Posted on 31 March 2011
Four new capital protected property funds are to be launched in Turkey by Akbank subsidiary Ak Asset Management. The funds, which will be linked to food, gold and oil prices are due to be opened next month.
"The capital protected property fund has started to gain a larger share in the portion of the Turkey’s total asset management," said AK Asset Management general manager Dr. Alp Keler, during a Tuesday meeting in Istanbul.
"The share of the protected funds has increased sevenfold in the last two years and now covers some 10 percent of all funds offered by Ak Asset," he said.
Keler also told reporters that the firm is currently managing some 8.3 billion Turkish liras worth of assets, giving them a 13 percent market share.
"We aim for a bigger portion," he said, predicting that the sector will grow from the current 50 billion liras, to be worth 200 billion liras over the next few years.
"With the new protected funds linked to commodity prices, we are aiming to increase 20 percent current share in domestic protected funds market," said Keler. "As the current interest rate could not secure investments against the risks of inflation across the world, I believe the investments could be hedged with oil, cotton, gold and food prices."
Two funds will be launched on April 4th, one a 100% capital protected fund linked to a basket of commodities such as corn, sugar and soy, and an 89% capital protected fund linked to another basked of gold. Funds linked to oil, copper, gold, cotton and leading companies on the Istanbul Stock Exchange (ISE-30) will be launched towards the end of the month.