Turkey's Denizbank to launch pension funds in July
Güncelleme Tarihi:
by Reeta Paakkinen
Oluşturulma Tarihi: Mart 13, 2009 00:00
ISTANBUL - Deniz Emeklilik ve Hayat, the life insurance and private pensions operation of Denizbank, expects to launch its pension insurance business in July this year.
The firm, earlier known as Deniz Life Insurance, gained a license to operate as a pension company in September 2008 and changed its name in November 2008.
Deniz Yurtseven, general manager of Deniz Emeklilik, said the company is now expecting to finalize the authorization procedures before it can launch the pension business. "Among others, we still need to get approval for the seven pension investment funds we will offer. We expect business to start in July. Our goal is to be among the five biggest pension insurance companies in sales to new customers in the next three years," Yurtseven told the Hürriyet Daily News & Economic Review on Tuesday.
Turkey’s private pension system was established in 2003 and is currently made of 12 companies managing assets totaling 6.62 billion Turkish Liras. So far only 1.76 million of Turkey’s population of some 70.5 million is contributing to private pension funds.
"We established Deniz Emeklilik to keep up with competition in the market and the other banks that offer private pension funds. This is a rapidly growing market, which has high growth potential and good profits in the medium to long term," Yurtseven said.
Deniz Emeklilik aims to market its pension funds primarily through Denizbank but also at post offices and through the Internet.
Yurtseven notes the ongoing finance crisis is likely to slow down the growth of the sector this year but there is also light at the end of the tunnel. "Last year saw a number of regulatory developments, which would boost the sector if it was not for the crisis," Yurtseven said.
Yurtseven was referring to vesting rights and the regulation, which allows foundations and associations to transfer members’ pension assets to the private pension system. "We should remember pension funds are a long-term business in which some years are better and some worse than the average. As the market is still so new and limited in Turkey, it will keep on growing despite the crisis."
Deniz Emeklilik’s seven funds will be invested in a variety of asset classes including equities, currency and bonds. "We prefer to enter the market with a quite plain product offering, which is also the case in other Turkish pension firms. Perhaps in five years time the market will also see the evolution of sector equity funds, technology funds for example. But for now, more traditional asset classes like bonds and currency make the lion’s share of pension portfolios," Yurtseven said.
Deniz Yurtseven, general manager of Deniz Emeklilik, said the company is now expecting to finalize the authorization procedures before it can launch the pension business. "Among others, we still need to get approval for the seven pension investment funds we will offer. We expect business to start in July. Our goal is to be among the five biggest pension insurance companies in sales to new customers in the next three years," Yurtseven told the Hürriyet Daily News & Economic Review on Tuesday.
Turkey’s private pension system was established in 2003 and is currently made of 12 companies managing assets totaling 6.62 billion Turkish Liras. So far only 1.76 million of Turkey’s population of some 70.5 million is contributing to private pension funds.
"We established Deniz Emeklilik to keep up with competition in the market and the other banks that offer private pension funds. This is a rapidly growing market, which has high growth potential and good profits in the medium to long term," Yurtseven said.
Deniz Emeklilik aims to market its pension funds primarily through Denizbank but also at post offices and through the Internet.
Yurtseven notes the ongoing finance crisis is likely to slow down the growth of the sector this year but there is also light at the end of the tunnel. "Last year saw a number of regulatory developments, which would boost the sector if it was not for the crisis," Yurtseven said.
Yurtseven was referring to vesting rights and the regulation, which allows foundations and associations to transfer members’ pension assets to the private pension system. "We should remember pension funds are a long-term business in which some years are better and some worse than the average. As the market is still so new and limited in Turkey, it will keep on growing despite the crisis."
Deniz Emeklilik’s seven funds will be invested in a variety of asset classes including equities, currency and bonds. "We prefer to enter the market with a quite plain product offering, which is also the case in other Turkish pension firms. Perhaps in five years time the market will also see the evolution of sector equity funds, technology funds for example. But for now, more traditional asset classes like bonds and currency make the lion’s share of pension portfolios," Yurtseven said.