Statement on BES from the Insurance Association of Turkey

Following the liquidation decisions of the Capital Markets Board, the Insurance Association of Turkey issued a statement addressing claims of a liquidity issue in the Private Pension System, announcing that there are no disruptions in the system.

Fund Structures Are Different

The Insurance Association of Turkey stated that the largest share among the liquidated funds belongs to the free fund type and that these funds are not among the BES funds.

It was explained that the legal and operational structures of investment funds and pension investment funds are completely different from each other.

Market Movements and Fund Values

It was stated that movements in capital markets can lead to daily changes in fund values, and a decline was observed in the initial stage, particularly in equity-weighted and flexible funds.

It was specifically emphasized that no liquidity problems have emerged in pension investment funds to date.

Sector Data and Statistics

According to Pension Monitoring Center (EGM) data, the total fund size of BES and OKS decreased from 2.613 trillion TL on September 14 to 2.566 trillion TL on September 28.

It was noted that during the same periods, new entries into the system declined, while withdrawal requests and completed exit transactions also decreased.

Audit and Guarantee Mechanisms

It was stated that the duties and responsibilities of the pension company, portfolio management company, and custodian institution in BES are strictly separated from each other.

It was expressed that the system is subject to the audit, supervision, and custody mechanisms of the CMB, SEDDK, Takasbank, and the Pension Monitoring Center.

Emphasis on Long-Term Savings

It was reminded that BES is a long-term savings system based on building up savings over time through regular contribution payments.

Participants were urged to make decisions by considering their risk profiles and long-term financial goals alongside short-term market movements.