Ak Asset Management, a subsidiary of Turkish lender Akbank, hopes a new series of commodity-linked funds will increase its share of the country's capital-protected fund market from its current 20%, according to general manager Alp Keler.
Keler told journalists in Istanbul yesterday that protected funds' share of Ak AUM has increased sevenfold in the last two years. "[They now cover] some 10% of all funds offered by Ak Asset," he said. "The total volume of capital-protected funds managed by Ak Asset Management hit nearly 3 billion liras [€1.3bn] by the end of last year."
Keler added that capital-protected funds have begun to attain a larger share of Turkish assets under management. He said they, and other alternatives, are benefiting from the fact that current interest rates cannot hedge investments against the risk of inflation.
The firm is gearing up to launch four capital-protected funds linked to food, gold and oil index prices next month. Keler said he expects interest to be high: "With the new protected funds ...we are aiming to increase to 20% our current share in the domestic protected funds market."
A 100%-protected fund linked to a basket comprising corn, sugar, soy, and an 98% protected fund linked to gold, will be launched on 4 April. Two 98%-protected funds linked to a basket of oil, copper, gold, cotton and the Istanbul Stock Exchange (ISE-30 index) will be launched on 25 April.
Ak Asset Management has TRY8.3bn under management, 13% of the national total.