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February 11, 2000/5 Adar 1 5760, Vol. 52, No.23
Businessman turns profit in land of prophets
BRIANNE KORN
Jewish Telegraphic Agency
JERUSALEM - "The land of the prophets is becoming the land of profits," says an American businessman who has transformed his passion for the State of Israel into a successful business venture.
Last year, Cliff Goldstein, 42, launched AMIDEX35, a mutual fund index that tracks and invests in 35 of Israel's largest companies. The mutual fund's exclusive interest in Israel is a first for any American fund.
Its success has real personal meaning for Goldstein, whose interest in Israel began at the age of 7, when his father brought him to a shareholders' meeting of Ampal, an Israeli holding company.
"He bought me five shares," Goldstein, who lives in Pennsylvania, recalls, "which totaled about $1.50 back then, but it made me a shareholder."
He remembers those who participated in that meeting at the Waldorf Astoria as a group of people who were not only interested in making money. "These people were there for a purpose: to invest and support Israel," Goldstein says.
When his father died three years ago, Goldstein believed the proper thing to do with his inheritance would be to invest in his father's dream.
Investing in a single Israeli company, however, was not the answer for Goldstein, who says he was watching the growth of Israeli companies with excitement. "I wasn't happy with personal results, though," Goldstein says. "So I looked for mutual funds to diversify my Israeli investments."
So the index of AMIDEX35 was born on Jan. 1, 1999, with Goldstein's hopes of honoring his father's legacy and "finding a path to assist others to invest in Israel."
The mutual fund was introduced by Goldstein's company, TransNations Investments of New York, in June. It represents a diverse spectrum of Israeli businesses. Since its launch date, AMIDEX35 has gone up 42.9 percent, and the fund's assets approach $10 million, according to Goldstein.
Israel now has more than 700 Israeli companies trading on the Tel Aviv Stock Exchange and 120 on the New York markets, including many technology industries alongside traditional banks, insurance and retail. Many are business-to-business industries, making the actual product or service practically unknown to the average consumer.
"Most Israeli technology companies are not household names to us," Goldstein says. "The chip and the billing software your company uses may be Israeli, even though you may not see an Israeli name.''
Businesses opt to trade on the New York markets, however, "because that's where the money is," Goldstein says. "More than half of Israel's stocks are traded outside of Israel."
Companies tracked by the index include Check Point Software Technologies, TEVA Pharmaceuticals and Gilat Satellite Networks.
"It often shocks people," Goldstein says of the image people hold of Israeli businesses. "They imagine some guy in shorts and a funny hat selling oranges, but the image is changing."
AMIDEX35's Web site can be accessed at http://www.amidex.com.
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