Three Turkish state-owned portfolio management companies to be merged - columnist
Three Turkish state-owned portfolio management firms administering investment and pension funds and providing investment consultancy services will be merged according to government’s New Economic Programme, columnist Noyan Doğan said in Hürriyet newspaper on Thursday.
Treasury and Finance Minister Berat Albayrak unveiled details of the programme last week, promising fiscal discipline and reforms in the finance sector.
But Noyan said many had missed one of the commitments in the programme that pledged a strong institutional finance company would be established for foreign currency transactions by merging public investment institutions, while public portfolio management companies would be merged to bolster their purchasing capacity.
“As much as we understand from that, in accordance with the New Economic Programme, investment institutions of the public will be merged with portfolio companies in the next three years,” Noyan said. There are three state-owned portfolio management companies in Turkey established as subsidiaries of three state-owned banks; Halkbank, Vakıfbank, and Ziraat Bank.
The three companies have a 20 percent share in the market, Noyan said, adding that the merger would create a stronger player that would be capable of attracting funds from abroad and of internationally marketing funds established in Turkey.