Abstract:

As an emerging market, Turkish economy has the fund capacity of USD 15.4 billion. Turkish pension fund sector, established in 2003, has currently achieved the fund size of USD 1.8 billion. In this study, 9 actively managed growth fund evaluated either in terms of conventional performance methods or in multiple factor evaluation method, in this regard the performance persistence of the funds has also been investigated. Conventional methods have revealed that the funds have superior performance upon the market portfolio. However, multiple factor method has shown that the funds have strong performance with an efficient selectivity, on the other hand the ability of market timing of these funds have found inadequate. In performance persistence studies, we found that pension funds have a tendency to show vigorous performance. Consequently, having considered the positive performance figures with performance continuities and structural advantages (tax, fund stoppages etc.), the pension fund sector would appeal high demand for long term financial investors, so that the Turkish capital markets might be affected positively.

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