Turkey’s 70 billion-lira ($33 billion) local fund-management industry is targeting growth of 20 percent a year of assets under management through 2023 after the government changed pension rules to attract saving.
Contributions to private pension funds will drive the expected increase in assets, Alp Keler, CEO of Ak Asset Management and head of local asset managers’ association TKYD, said today at a press conference in Istanbul. The 26 billion liras Turkish savers invested with fund managers through pensions in 2013 is 29 percent more than in the prior year, before the government introduced incentives to lure savers.
Asset managers are benefiting after Turkey passed a law to match 25 percent of savers’ own contributions to pension funds as it battles a current account deficit which Goldman Sachs Group Inc. (GS:US) said earlier this year is “ultimately unsustainable.” HaberTurk newspaper last week reported that the government is preparing to make enrollment on a personal pension plan automatic for new employees with 3000 liras net salary, without saying how it got the information.
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