International Equity Asset Classes in the Turkish Fund Industry

Posted: 29 Nov 2012

See all articles by A. Can Inci

A. Can Inci

Bryant University

Hakan Saraoglu

Bryant University - Department of Finance

Date Written: 2011

Abstract

We examine Turkish fund portfolios and identify the role of international investments in their formation. We find that (1) Turkish funds hold a very small fraction of international assets during 1987-2008, (2) the weight of international equity in the funds with an international mandate is smaller than the total weight of domestic asset classes as of 2009, and (3) international stock holdings of Turkish portfolio managers show significant similarity, which can be explained by the fact that the managers tend to hold stocks with which they are familiar. We compare the performance of funds that have the international investment objective with benchmark portfolios and provide suggestions for more diverse funds in the Turkish fund industry.

Keywords: Diversification, Mutual funds, Pension funds, Portfolio management

JEL Classification: G11, G23, G14

Suggested Citation

Inci, Ahmet Can and Saraoglu, Hakan, International Equity Asset Classes in the Turkish Fund Industry (2011). Emerging Markets Finance and Trade, Vol. 47, No. 4, pp. 96-114, 2011 , Available at SSRN: https://ssrn.com/abstract=2182354

Ahmet Can Inci (Contact Author)

Bryant University ( email )

1150 Douglas Pike
Smithfield, RI 02917
United States

Hakan Saraoglu

Bryant University - Department of Finance ( email )

1150 Douglas Pike
Smithfield, RI 02917
United States

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