Abstract:

The Morningstar star rating system, has been used commonly in both academic and practitioner circles as having the most effective rating system tool in the mutual fund industry. A system created by Morningstar company which ranks mutual funds based on their risk adjusted performance over various peri ods from five star (is best) to one star (is worst). In this study we use Morningstar star rating system to evaluate performances of Turkish pension mutual funds during the period January 2004-December 2008. As a result, it can’t even be discussed an efficient portfolio management and pension mutual funds mostly have an lower mean return performance than the treasury bond and their Morningstar overall performance results are negative. Involved in a middle aged fund group, the best performing fund group is Government Bonds and Bills Funds, whereas the worst performing fund group is International-FX Indexed Funds.

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