Within the framework of the agreement signed with the Turkish Institutional Investment Managers’ Association (TKYD), Borsa İstanbul will calculate the indices used as benchmark to calculate fund performance.
According to the agreement signed between Borsa İstanbul and the Turkish Institutional Investment Managers’ Association (TKYD) on April 29, licensing of indices to market actors and commercialization of the same will be realized by Borsa İstanbul. New indices in consideration of the needs of the fund market will be developed by the committee to be formed by Borsa İstanbul and the Turkish Institutional Investment Managers’ Association. The Committee will meet on a regular basis.
In addition to its efforts to ensure the development and spreading of institutional investors, the Turkish Institutional Investment Managers’ Association has been calculating, since 1999, most of the benchmark indices used by investment funds, individual pension funds, exchange traded funds, investment trusts, free funds and the funds managed by portfolio management companies for measuring fund performance. The 30 indices created by the Turkish Institutional Investment Managers’ Association will start being calculated by Borsa İstanbul as a result of the cooperation of the two organizations. The cooperation is expected to develop new indices for the market and expand the fund market.
In his speech following the signing ceremony at Borsa İstanbul, Executive Vice President Dr. Mustafa Kemal Yılmaz reminded the audience that Borsa İstanbul is in the process of transition to NASDAQ systems, adding that Borsa İstanbul’s new index calculating technology as well as experience in this field will contribute to the quality of the indices. Yılmaz said that the cooperation is aimed at developing indices for the market and expanding the fund market, and added, “Borsa İstanbul has taken significant steps in the recent years as part of Istanbul International Financial Center vision. Borsa İstanbul entered into cooperation with TKYD in accordance with international standards and in consideration of the market needs; and within this framework, will start calculating KYD indices on July 1, 2015. KYD indices have been calculated by TKYD since 2000. I believe that merging TKYD’s market experience with Borsa İstanbul’s expertise on indices will significantly contribute to the development of the fund sector in Turkey. I do hope that this cooperation will prove fruitful for our market”.
Turkish Institutional Investment Managers’ Association Chairman Dr. Alp Keler said that portfolio management sector plays a significant role in the development of the Turkish economy and in making Istanbul a financial center, and therefore it is necessary to have a strong portfolio management sector. Dr. Keler went on to say, “We have seen that it is very important to correctly measure performance so that portfolio management sector can be well-positioned. Having discovered such need, TKYD created the KYD indices in 2000, and since then, has been adding new indices to its portfolio as the sector requires. We introduced 2 indices back in 2000, and KYD indices today serve 426 investment and pension funds, 6 investment trusts, and 62 companies. As of March 31, 2015, the size of the collective investment institutions using KYD indices reached TL 70.4 billion. The synergy that will be created as a result of the cooperation with Borsa İstanbul will help the indices to improve further and we will continue to create leading indices”.
