Conference taveng::bagels

889.0. "Dutch Investment Fund for Israel" by NWGEDU::RODENBURG (Ed. Services, The Netherlands) Wed Feb 21 1990 15:46

    
    I think a lot of you will not know that about 2 years ago a Dutch Investment
    Fund has been started, to do investments in objects in Israel.
    
    This fund, the King David Fund, has been started by some Dutch 
    businessmen. 
    To give you some further information, I hereby give the information
    the Fund distributes in an information flyer.
    
    Joop.

    
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   			King David Fund Ltd.

King David Fund N.V is a limited liability company incorporated under 
the laws of The Netherlands.
The articles of association have been established by notarial deed 
november 20th, 1987, after approval by the Department of Justice in
The Hague, november 18th, 1987, nr. N.V. 272802.

The company is registered in the commercial register with the chamber
of commerce at Harderwijk, the Netherlands, no 21100. It is established
and has its offices at Telefoonweg 206, 6711 NB Ede. Postal address
P.O. Box 465, 6710 BL Ede.

What is King David Fund N.V.?

King David Fund N.V. is a dutch investment company, specialised in 
investments in Israel. Its investment policy allows for a large variety
of investments: securities, mortgage secured loans, ventures in new
emerging companies, real estate, and projects related to the tourist
industry.
The fund's investment objective is to achieve for its investors a reasonable
investment income as well as long-term capital appreciation.

Why invest in Israel?

Israel occupies a key-position in the Middle East. In this area, so 
crucially important for the world-economy, it is the only nation with 
a democratic government, and with a society comparable to the patterns in 
Western European netaions.
Its geopgraphic location between the developed nations of Europe
and the newly emerging nations of Asia, offers many possibilities for an
intermediary function. Generally it is assumed that the world's economic 
centre of gravity gradually will shift towards the Far East. The expected 
increase in the flow of traffic between Europe and the Far East will provide 
extra stimuli for the Israeli import-, export and trasit trade.
As a result of this the Israeli economy could grow more than proportionally 
during the coming decades.

What are the characteristics of the Israeli economy?

Both agriculture and industry are developed to a high level. Israel has always
aimed for a self-supporting position in its food suply. For that purpose the
most advanced mechanical, chemical and electronical techniques are utilized
by Isreali agriculture.
Since its foundation in 1948 the State of Israel has been challenged in its 
right for existance. In order to protect the nation against forreign 
aggression a modern defense-industry has been built. This sector of Israeli 
industry has created important spin-offs to the non-military sector. 
Education and science have attained a high level. Israel's population 
consists for a high percentage of scientists and skilled engineers. 
Chjaracteristics like intelligence, crativity and entrepreneurial spirit 
are well developed in the Israeli population as  a result of which the 
country is an ideal breeding ground for new high-technonoly industries.
The continuing state of alert in which teh nation has been forced to live 
has led to substantial internal strength and resisting capacity.

How is the investment climate in Israel?

Stimulation of industrial and scientific innovation is high on the Israeli 
Government's list of priorities. Research and development, paricularly in 
the export oriented industries, are actively supported.
Close ties between science and industry, a unique situation for trade due 
to trade-agreements with the US  and the European community, a well 
developed infrastructure, a Governement policy friendly to business and a 
well educated and trained, and well motivated labour force are all very 
beneficial to the Israeli high technology industry.
A number of attractive subsidies and fiscal measures for investments in 
industrial and tourist projects has been introduced. To this end the 
country has been divided in three zones, each with their own 
subsidy-tariff, which in the most favourable situations can be as high as 
40% for new investments.
If a subsidy is applied for, the corporate income tax is 10%. If not, no 
income tax is due.

Why is King David Fund established in Holland?

Holland has a unique and favourable tax-treaty with Israel. The country's 
capital, Amsterdam, is one of Europe's leading financial centres with a 
well-developed banking-system and an outstanding banking legislation. the 
Dutch securities legislation offers excellent protection to investors in 
securities - domestic as well as foreign.
Finally, Holland has longstanding and friendly relations with Israel and 
with the Jewish people.
Dutch fiscal legislation requires an investment fund to fully distribute 
its net-investment income to shareholders, and to fully reinvest realised 
capital gains.

How is King David Fund managed?

King David Fund is a Dutch limited liability company governed by a Board of 
supervisory directors and managed on a day to day basis by a managing 
director.
Investment decisions are made by an investment-committee, in which the 
management and the supervisory board are represented. The 
investment-committee can rely on the advises of Gift Ltd, a Tel-Aviv based 
independent investment-management firm.