Page 25 - Turkinsurance Digital Magazine

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Total fund size of participants in the Individual Pension Sys-
tem grew by 32 percent at the end of 2019 compared to the
end of 2018, reaching 16 billion 467 million USD. During the
first half of 2019, funds with highest rate of return were listed
respectively as precious funds, money market, composite & flex-
ible funds, bonds and bills, stock funds, and fund basket funds.
On the other hand, the ranking was changed into stock funds,
precious metals, composite & flexible funds, fund basket funds,
participation funds, bonds and bills, and money market funds at
the end of the year.

Stock funds have the highest return rates

When we analyze the year-end performances of pension funds
that aim to bring long-term returns to investors, we see that
pension funds brought a return of 37.60 percent in 2019. Stock
funds had returned a profit of -13.10 percent in the same period
of 2018. Occupancy rate of stock funds were reported as 1.16
percent in January, 1.15 percent in February, 1.12 percent in
March, 1.13 percent in April and May, 1.12 percent in June,
1.11 percent in July, August and September, 1.14 percent in
October, 1.15 percent in November, and 1.17 percent in De-
cember.

Precious metals funds brought a return of 31.62 percent

Precious metals funds had returned the highest profit to inves-
tors at the end of 2018 with 35.93 percent; but went down to
the second place at the end of 2019 with a return of 31.62 per-
cent. Occupancy rate of precious metals funds were reported as
6 percent in January, 6.29 percent in February, 6.68 percent in
March, 6.98 percent in April, 7.28 percent in May, 7.47 per-
cent in June, 7.74 percent in July, 6.03 percent in August, 5.52
percent in September, 5.69 percent in October, 5.85 percent in
November, and 6.06 percent in December.

Return of composite and & flexible funds increased by 369
percent compared to the same period of previous year

Composite and flexible funds brought the third highest return

Monthly rates of return by fund groups in 2019 (%)

Fund Group January F eb ru - March April May June July August Septem- October Novem- Decem-
ary ber ber ber
Bonds and bills funds 2,56 1,27 -1,52 3,26 0,14 4,62 0,80 2,01 2,10 2,13 1,52 3,32
Fund basket funds 6,13 1,51 -2,29 2,60 -0,57 4,29 2,95 -0,83 4,18 -0,29 3,87 4,15
Stock funds 13,54 1,56 -6,92 2,71 -2,87 7,06 4,29 -4,67 8,02 -3,91 8,29 7,40
Composite & flexible funds 5,25 1,00 -4,11 1,78 1,00 6,30 3,69 -0,29 5,05 1,10 3,08 2,64
Participation funds 2,51 1,96 0,41 1,52 -0,14 2,59 2,80 1,36 2,90 1,47 3,36 3,95
Precious metals funds 1,12 2,51 3,33 4,81 -0,46 6,77 -2,87 12,85 -5,77 2,07 -2,50 7,32
Money market funds 1,84 1,72 1,89 1,96 2,10 1,90 2,03 1,56 1,43 1,25 1,07 0,90

Reference: Finnet