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If your pension monies are part of the NIS 93 billion managed by insurance companies in their new policies - you have a problem.

TheMarker's ranking of the investment managers of provident funds, pension funds and life insurance for 2006 revelas that the insurance companies are the worst managers of pension savings.

Insurance firms have earned their customers average annual net yields of only 6 percent in the 2002 to 2006 period. This compares to annual gains of 8.35 percent net on average for provident funds, and 9 percent among pension funds.

The reason that insurance firms are so far behind is partly due to the pension fund managers being better investors - but also, and mostly because of the huge differences in management fees charged.

Insurance companies have charged 2.9 percent on average over the last five years, which means that one third of their customers' profits have remained in the companies' pockets.

In comparison, pension funds made due with an average management fee of only 0.76 percent.

The clear conclusion from TheMarker's rankings is that the most important factor in choosing who manages your pension investments is the management fees they charge.