The Performance of Portfolio Management Companies in Terms of Pension Funds: Evidence from Turkey

Abstract

Private Pension System (PPS) which has been in practice for many countries began its operations on 27 October 2003 in Turkey, and Pension Fund Companies (PFCs), Portfolio Management Companies (PMCs), and government authorities are three main actors in the system. Evaluating the performance of pension funds is vital to the benefit of all participants. In addition, the performance of the relevant funds should be periodically reviewed to use financial resources effectively and efficiently. In this respect, private pension funds are of vital importance, especially for countries with a savings deficit such as Turkey. When the finance literature is examined, it is seen that there are many studies to measure fund performance. However, examining the performance of funds alone is not an adequate control method for the IPS. In addition to the performance of the funds, the performance of those who manage the funds is also important for economic development. In this context, the aim of the study is to evaluate the performance of the PMC of pension funds with Sharpe Ratio and Treynor Index. 149 funds managed by 12 PMCs were included in the analysis for the period between January 2013 and December 2016. According to the findings, TEB PMC has the highest average Sharpe ratio (0.0768) and QNB FİNANS PMC has the lowest highest average Sharpe ratio (0.0225). According to the Treynor index, the highest average score (0.0524) belongs to GARANTİ PMC while the lowest score belongs to YAPI KREDİ PMC with (0.0048).

Keywords

• özel emeklilik
• emeklilik fonları
• portföy yönetim şirketleri
• private pensions
• pension funds
• portfolio management companies