Interest Rates Decreased, Revenue of BES Increased

Interest Rates Decreased, Revenue of BES Increased

  Garanti BBVA Pension General Manager Burak Ali Göçer stated that pension funds had a 28.2 percent return last year. This reflected positively on the income of fixed income funds, ”he said. Drawing attention to the high return of funds during the period when inflation was 11.8 percent, Göçer noted that the reason for the return was that the Central Bank continued its interest rate cuts in 2019. Göçer stated that this also reflected positively on the earnings of fixed income funds. While BIST100 yielded a 25.3 percent return, Garanti BBVA Pension stock fund yielded 38 percent, earning above the market. ” THERE IS IRON TO FUNDS Burak Ali Göçer, Bes'in, 16. he said: "while the funds of a new entrant in the system increase the amount they pay, the importance of the returns in increasing the funds of the participant who has been in the system for a long time is very great. One way to grow funds is to change funds. We see that participants are anchored to the funds they choose when they buy the product, not changing their funds.In this case, one should not expect great expectations. They can use the fund distribution change rights to increase their returns, and can analyze the instruments carried by the funds in detail and perform their own transactions. We estimate that the number of participants who have the knowledge and time to do this is limited. Last year, as a company, we aimed to grow the audience we had conversation about with funds and their funds. Compared to the previous year, we were able to increase the number of participants we offer this service by 73 percent. Hundreds of thousands of customers benefited from the best return performance of 2019 ” PARTICIPANTS HAVE DIFFICULT TO CHOOSE Geçer said that the participants had difficulty in choosing pension funds, and that they founded Smart Fund last year, and emphasized that Smart Fund is a flexible smart fund that keeps investment instruments in its portfolio that are suitable for market conditions and changes its rates according to needs. "Our customers do not need to constantly follow the markets and change their funds; they can focus on regular accumulation.Another option we offer to our participants who want to grow their funds is the Fund Coach. The Fund Coach looks at the risk group first, determines the funds that fit that profile. For this, our participants fill out only a three-minute survey. When there are economic changes during the year, we inform our participants, "The funds offered by the Fund Coach for your risk profile have changed." said. “In 2019, net deposit yield was 16.5 percent and inflation yield was 11.8 percent, whereas Fund coach's 4 risk Group yields were 23.7 percent to 34.9 percent,” he said. SHARE FUNDS SAVE 36.9 PERCENT Burak Ali Göçer said that in 2019, the stock was performing above other funds, yielding 36.9 per cent, and said: “in other funds that provide high returns, the variable fund is 25 per cent, the public foreign borrowing fund is 23.6 per cent, and the money market fund is in the front row with 21.6 per cent returns.When we look at the sector, we see that Bes participants prefer the most variable funds. Variable funds provided a 25 per cent return to its participant in 2019. As Garanti BBVA pension, the largest increase in the number of participants was in our Gold Fund and the return for the year 2019 was 32 per cent, compared with the sector.” WILL CONTINUE IN 2020 Giving information about the returns of pension funds in 2020, he said: “we think that interest rates will decline in the Turkish economy in 2020 and positive returns will continue in alternative investment instruments. Our BES participants will continue to diversify in their investment baskets as well, and the interest of the participants in equities, gold and foreign debt instruments funds as well as fixed income instruments will continue.”