According to the sector report on participation-based funds, KT Portfolio Management, a 100% subsidiary of Kuveyt Turk, the size of investment and pension funds managed on a participation basis exceeded ₺120 billion as of the end of October.
According to the sector report on participation-based funds by KT Portfolio Management, a 100% subsidiary of Kuveyt Turk, the size of investment and pension funds managed on a participation basis exceeded ₺120 billion as of the end of October.
According to the statement made by Kuveyt Turk, participation-based funds, which have become increasingly widespread and investor base in recent years, continue to grow with a stronger momentum compared to interest-bearing funds.
Participation-based funds, which were ₺70 billion at the end of 2021, exceeded the ₺120 billion limit as of the end of October and increased their share in the portfolio management market to 11%.
KT Portfolio Management, a 100% subsidiary of Kuveyt Turk, the market leader in participation-based mutual funds, offers its investors various funds in many asset classes such as precious metals, stocks, fixed income assets and venture capital mutual funds.
KT Portfolio shared its sector report on participation-based funds for October with the public. According to the report, the increasing interest in capital markets in Turkiye, with the effect of macroeconomic conditions, supports the portfolio management sector. There is an increasing tendency for investors to hand over their assets to professional licensees in volatile market conditions.
Factors such as developing financial literacy, transparency and ease of access to information provided by the fund data published daily, encouraging savings on the private pension side, incentive mechanisms for investing in funds, proving the competence of funds in volatile market conditions are among the reasons for the increasing interest in portfolio management companies.
Factors such as diversification in mutual funds, acting according to the investor profile, and licensed professionals continue to make the funds attractive.
“Precious metals, sustainability and money market funds are on the rise”
Hamit Kutuk, General Manager of KT Portfolio, whose views are included in the statement, stated that participation-based mutual funds are growing rapidly in the field of portfolio management, and said:
“Among the funds managed within the Private Pension System, we observe that participation-based funds continue to increase their market share by growing stronger than interest-bearing funds. It is also noteworthy that in the funds in the Auto Enrollment System, participation-based funds are larger than interest-bearing funds. With the introduction of different investment themes and fund types to investors, we can state that the inflows to funds have increased. As KT Portfolio, our precious metals fund, which we have recently established, investing in precious metals such as gold and silver, our sustainability fund, which also invests in shares traded in the USA with a sustainability theme, we continue to offer investors different options to evaluate their savings with our share fund that invests in shares that meet the participation finance criteria, and our money market fund that allows daily inflows and outflows and that we have established for liquidity management.”
Hamit Kutuk stated that the KDL fund offered by KT Portfolio is a fund where savers can evaluate their USD savings and cash flows on a short-term basis and said, “In addition to our securities funds, we continue to offer the opportunity to invest in start-up companies and ventures with the KT Portfolio Lonca Venture Capital Investment Fund. We expect the interest in participation-based funds to continue to increase in the coming period.”
Market share of participation-based mutual funds rose to 11%
According to the sector report of KT Portfolio, when the growth trends in the portfolio management sector are analyzed, it is seen that participation-based mutual funds grow with a stronger momentum compared to interest-bearing funds.
Participation-based funds, which have gained the favor of investors and expanded their customer base, offer their investors a variety of options in many asset classes. Participation-based funds, which were ₺70 billion at the end of 2021, exceeded the ₺120 billion limit in October, and portfolio management increased its market share to 11%. From a sectoral perspective, it is seen that participation finance penetration is higher in portfolio management than in the banking sector.
According to the monthly bulletin data of the Banking Regulation and Supervision Agency (BDDK), the asset size market share of participation banks in the entire banking sector stood at 8.5% as of September.
Source: AA / Translated by Irem Yildiz