Abstract:

This article sheds light on the Turkish asset management industry through portfolio managers’ perspective. In this empirical research, we surveyed the industry professionals, i.e., the portfolio managers with a comprehensive questionnaire, and aimed to identify the development areas and the recommendation thereof within the market. We reached the following conclusions: The assets under management should be increased especially by introducing new institutional investors into the market. Returns generated by the industry should be enhanced by promoting a competitive environment based on common benchmarks per fund category and introducing new financial instruments. A performance-oriented portfolio management culture whereby portfolio managers are encouraged to seek for alpha should be created, and their individual performance should be transparently and objectively calculated, recorded, and taken into consideration in promotions and career changes. Financial literacy about fund products is very low; enriching TEFAS and creating an independent financial advisory profession licensed by the CMB could help the diffusion of fund products. In Turkey, banking is sixteen times larger than asset management (as of 2019) – a fact hindering the development of the industry – which requires positive discrimination of asset management against banking vis-à-vis the regulations. Reforming the voluntary individual pension system and enforcing a more business-friendly regulation can also help grow the industry.

Keywords:

pension fund, mutual fund, portfolio managers' perspective, fees, fund returns, regulation.

JEL Classification:

G23, G28.

How to Cite:

Tayfun Ozkan and Hakki Ozturk. Turkish Asset Management Industry: Porfolio Managers’ Perspective. [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a125/