1/14/2009

Turkey’s pension funds grow 32 percent

Hurriyet English - Pension funds around the world narrowed 20 percent on average last year, incurring a loss of USD 5 trillion due to the global credit crunch. However, the situation in Turkey is exactly the opposite, as total value of pension funds reaches 6.4 billion Turkish liras. This growth tendency is expected to continue. "The global financial crisis has not had an impact on us. On the contrary, we continued our growth" said Yusuf Yesilirmak, General Manager of Vakif Emeklilik. "The share of pension funds invested in equity hovers at around 60 to 65 percent in the United States. This figure stands below ten percent in Turkey" he said. Nearly 86 percent of the pension funds have been invested in public borrowing instruments or in fixed yield investment vehicles such as reverse repo in Turkey. Meanwhile, the share of pension funds invested in equity in the country stands at only eight percent. The prudent investment style has helped the funds maintain their value and not bear big losses, agree directors of pension companies, adding that they expect the investors to follow a similar path this year.