SCHEDULE: Harel Insurance Reports 6% Stake in Formula Systems

Harel Insurance Investments & Financial Services Ltd. has disclosed a beneficial ownership of 6.0% in Formula Systems (1985) Ltd., holding 919,456 American Depositary Shares.

Summary

• Harel Insurance Investments & Financial Services Ltd. has filed a Schedule 13G, indicating it beneficially owns 919,456 American Depositary Shares (ADS) of Formula Systems (1985) Ltd.
• This represents 6.0% of the class of securities outstanding as of June 30, 2025.
• The filing specifies that of the total shares, 912,598 are held for members of the public through various managed funds, 6,414 are held in third-party client accounts where Harel acts as portfolio manager without voting power, and 444 are held for Harel's own account.
• Harel Insurance Investments & Financial Services Ltd. is an insurance company organized in Israel.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral filing, as it primarily reports passive ownership and does not contain operational or financial performance data for Formula Systems (1985) Ltd.

Positives

• Harel Insurance Investments & Financial Services Ltd. has a significant beneficial ownership stake of 6.0% in Formula Systems (1985) Ltd., indicating investor confidence.
• The majority of shares are held for public benefit through various funds, suggesting broad investment management activities.

Negatives

• Harel Insurance Investments & Financial Services Ltd. explicitly states that the filing should not be construed as an admission of beneficial ownership of more than 444 shares for its own account, potentially downplaying its direct control or investment intent beyond managed funds.

Risks

• The filing does not explicitly mention any risks.
• Potential future changes in investment strategy by Harel Insurance Investments & Financial Services Ltd. could impact Formula Systems (1985) Ltd.'s share price or stability.

Future Outlook

The filing is a Schedule 13G, which reports passive ownership stakes and does not contain forward-looking statements or guidance from Formula Systems (1985) Ltd.

Management Comments

• "With regard to the date of event that requires filing, see the explanatory note in Item 4."
• "With regard to Rows (6), (8) and (9), please see Item 4."
• "Consequently, this Statement shall not be construed as an admission by the Reporting Person that it is the beneficial owner of more than 444 Ordinary Shares covered by this Statement."
• "By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under ?? 240.14a-11."

Industry Context

StockSavvy.ai notes that Schedule 13G filings are typically made by institutional investors who acquire beneficial ownership of more than 5% of a class of a company's registered equity securities. This filing indicates Harel Insurance Investments & Financial Services Ltd. has taken a passive, non-controlling stake in Formula Systems (1985) Ltd., which is common for large financial institutions managing diversified portfolios.

Stakeholder Impact

• Shareholders: The filing indicates a significant institutional investor's passive stake, which may be viewed positively as a sign of confidence, but does not directly impact current share value or dividends.
• Creditors: No direct impact is indicated as the filing pertains to equity ownership.
• Employees: No direct impact is indicated.
• Customers: No direct impact is indicated.

Next Steps

• Harel Insurance Investments & Financial Services Ltd. will continue to hold its stake in Formula Systems (1985) Ltd. as per its investment strategy.
• Formula Systems (1985) Ltd. will continue its business operations as usual, with no immediate impact implied by this filing.

Key Dates

Keywords

Schedule 13G, Harel Insurance Investments & Financial Services Ltd., Formula Systems (1985) Ltd., American Depositary Shares, Beneficial Ownership, Securities Filing, Investment Management, Israel