IIA Pitchbook August 2022

Actively Managed Israeli Stock Portfolio
Focused on long term growth
Israel Investment Fund Summary
August 2022
www.israelinvestmentadvisors.com
Established in 2010, Israel Investment Advisors (IIA) is the premier way for Americans to invest in the Israeli
stock market.
We translate our knowledge of the Israeli economy into long-term growth for our clientsʼ capital.
We help our clients align their portfolios with their Israel-focused missions.
IIA is a Securities and Exchange Commission (SEC) registered investment advisor.
We offer asset management solutions to individuals, foundations, and endowments.
We are a subsidiary of GHP Investment Advisors, a registered investment advisor with $2 billion AUM.
your
your primary
primary contacts
contacts
Brian Friedman, CFA Amy Kaufman

President, Co-Founder and Portfolio Manager Director, Investor Relations
1290 Broadway, Suite 1100, Denver, CO 80203 303‐861‐3798
WHY ISRAEL?
Fast growth
Fast growthstory
storyunique
unique in the
thedeveloped
developedworld
world
Strong
macroeconomic
fundamentals
WHY ISRAEL?
Fast growth story unique in the developed world
The History of the Israeli Economy
Strong
macroeconomic
fundamentals
SOCIALISM / MONOPOLISM
WHY ISRAEL?
The history of the Israeli economy is marked by Israelʼs transition from socialist
collapse, hyperinflation, and high debt in the 1980s to a market-oriented economy,
due to waves of structural reform.
WHY ISRAEL?
Strong Macroeconomic fundamentals
Growth in productivity relied on major economic
structural reforms:
The Privatization policy
The Bachar Committee Reform
The Deconcentration Committee reforms
The Credit Card spinoffs
Rule of law
Unique growth in GDP per capita

Since WWII, Israel is amongst the few that made the giant leap from
Emerging Market into Developed Market
Israelʼs GDP growth rate relative to other developed countries is faster
Israel is Israel is unique in its commitment to continued structural reform

unique in the At Israel Investment Advisors, we believe this commitment will continue
developed
world This is the foundation for continued economic growth
WHY ISRAEL?
Why Israeli Capital/Stock Markets?
?
1. Why is capital accumulating in Israel?
2. Why is more of that capital flowing into the financial markets
such as the Corporate bond market and the Stock market?
Despite more domestic capital flowing into the capital

markets, foreign interest remains muted.
CURRENT VALUATIONS OF TA-125 VS HISTORICAL AVERAGE
ISRAEL CORPORATE TAX
(on undistributed profits)
%
How does Israeli stock market investing benefit ISRAEL?
Israel needs more capital flowing into its capital markets.
A larger, more liquid stock market with higher company valuations will
help solve the early‐exit problem for Israelʼs tech startups.
Israel needs to become less of a secret among international investors.
By taking advantage of the opportunity that inattention brings, we may
actually work toward ending that inattention, in partnership with your
organization.
ISRAELʼs story is a very sustainable story
Why now?
Since 2010, when Israel “emerged,” it was upgraded to the EAFE
Index, triggering outflows that have not yet recovered when EM
index funds liquidated in 2010.
Since then Israel has been a tiny, overlooked fraction of developed-
market indices.
MSCI EM Index
"Before"
MSCI EAFE Index

"After"
Now is the time
The transformation in Israel is not an event waiting to happen,

it has happened.
Why Israel Investment Advisors?
We have unique expertise in the Israeli economy and markets, going back 35 years.
We offer American investors seeking long‐term growth the premier way to access
investment in Israelʼs capital markets.
Investing in Israeli equities is best conducted under the kind of active management
IIA has provided over its 10‐year history.
Why Active Management?

The Israeli stock market is a small cap/micro cap market, moderately liquid.
Not many Israeli companies would fit the criteria in typical indices.
Unlike large‐cap funds that can often be effectively managed passively, investment in
Israel benefits from expertise in an economy with unique and often poorly understood
characteristics.
How Does IIA Select Investments?

Our investment benchmarks help us identify companies with strong fundamentals and
the potential for long‐term growth, companies that...
... Are already profitable.
... Have solid balance sheets.
... Offer growth at a reasonable price.
... Are value‐oriented.
Why Israel Investment Advisors?
Why Active Management?
OUR
OUR INVESTMENT
INVESTMENT PROCESS
PROCESS
At Israel Investment Advisors, LLC we seek to capitalize on significant differences between the current market price of a
companyʼs stock and the expected future investment value.
Our investment decisions are based upon an analysis of the business fundamentals of the company and the broader sector in
which it operates. Our objective is long-term wealth creation.
An important determinant of the value of a company is its risk. All else being equal, the greater the risk associated with a
company the lower its intrinsic value. For each potential investment in the portfolio, Israel Investment Advisors, LLC performs a
risk analysis based on six major criteria:
Valuation Analysis Economic Analysis

A barometer of perception: a A company's sensitivity
highly valued stock may to the business cycle and
represent unrealistically high interest rates will
expectations, whereas a low determine the economic
valuation may indicate undue risks. Industries and
pessimism. Fairly valued or sectors may also exhibit
undervalued securities cyclical behavior that is
typically present less risk of separate from the
downside loss than broader business cycle.
overvalued securities.
Financial Analysis Technology Analysis

The appropriate amount The development of competitive
of financial leverage for a technologies, products or
company is a function of services may be detrimental to
several factors, including any business's prospects. Some
the nature of the companies, however, face more
business, the cost of imminent risks than others. We
financing, and the estimate the degree and nature
current stage of the of technology or obsolescence
business cycle. risk.
Operating Analysis Legal Analysis

Operating risks are the Continued legal and regulatory
elements of a companyʼs reform in Israel can be a major
business strategy or source of economic growth and
economics that could cause investment opportunity. We pay
significant changes in attention to legal and regulatory
revenues or earnings, such as developments to help identify
high percentage of fixed costs opportunities, but these same
in a company cost structure or changes can also present
highly concentrated customer potential risks, such as
or product base. increased competition.
How does investing in Israeli Capital Markets align with
your mission?
Support Israel's economy and security through increased capital flow.

Follow the guidelines of Maimonides and his Ladder of Tzedakah.
For Maimonides, the highest rung of philanthropy is capital partnership.
“The greatest level [of tzedakah], above which there is no

greater, is to support a fellow Jew by endowing him with
a gift or loan, or entering into a partnership with him…in
order to strengthen his hand until he need no longer be
dependent upon others…” MAIMONIDES, MISHNEH TORAH, MATNOT ANIYIM, 10:7
Our Fees
For more information contact:

Amy Kaufman Director, Investor Relations
303.861.3798 | akaufman@israelinvestmentadvisors.com

IIA Pitchbook August 2022

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Actively Managed Israeli Stock Portfolio

Focused on long term growth

Israel Investment Fund Summary

Brian Friedman, CFA Amy Kaufman

1290 Broadway, Suite 1100, Denver, CO 80203 303‐861‐3798

1290 Broadway, Suite 1100, Denver, CO 80203 303‐861‐3798

The History of the Israeli Economy

1290 Broadway, Suite 1100, Denver, CO 80203 303‐861‐3798

1290 Broadway, Suite 1100, Denver, CO 80203 303‐861‐3798

Unique growth in GDP per capita

Israel is Israel is unique in its commitment to continued structural reform

1290 Broadway, Suite 1100, Denver, CO 80203 303‐861‐3798

1290 Broadway, Suite 1100, Denver, CO 80203 303‐861‐3798

Despite more domestic capital flowing into the capital

1290 Broadway, Suite 1100, Denver, CO 80203 303‐861‐3798

CURRENT VALUATIONS OF TA-125 VS HISTORICAL AVERAGE

1290 Broadway, Suite 1100, Denver, CO 80203 303‐861‐3798

1290 Broadway, Suite 1100, Denver, CO 80203 303‐861‐3798

ISRAELʼs story is a very sustainable story

1290 Broadway, Suite 1100, Denver, CO 80203 303‐861‐3798

MSCI EAFE Index

Now is the time

The transformation in Israel is not an event waiting to happen,

1290 Broadway, Suite 1100, Denver, CO 80203 303‐861‐3798

Why Active Management?

How Does IIA Select Investments?

1290 Broadway, Suite 1100, Denver, CO 80203 303‐861‐3798

Valuation Analysis Economic Analysis

Financial Analysis Technology Analysis

Operating Analysis Legal Analysis

1290 Broadway, Suite 1100, Denver, CO 80203 303‐861‐3798

Support Israel's economy and security through increased capital flow.

“The greatest level [of tzedakah], above which there is no

For more information contact:

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