Schroders Reduced Its Position in Turkish Stocks

Schroders reduced its position in Turkish stocks. The company touched on the CBRT Governorship change.

Schroders Fund Manager Mohsin Memon pointed out that the unexpected CBRT Governorship change in March weakened the overall investment climate somewhat and announced that they reduced their Turkish positions. According to Bloomberg's report, Memon stated that the weakening in the investment climate showed itself as rising borrowing costs and rising inflation expectations. Despite all the difficulties, Schroders believes retail, tourism and healthcare companies will benefit from stretching coronavirus restrictions. Regarding the matter, Memon said, "Although Turkish assets offer significant upward potential to both domestic and foreign investors, this potential may require patience given the lack of policy anchor and damage to economic fundamentals in the short term." At the beginning of March, Schroders Fund Manager Rollo Roscow stated that after the changes in the Ministry of Treasury and Finance and the CBRT in November 2020, they have a "more constructive view" about Turkey.