It is stipulated in the legislation that;
- Fund comparison groups, funds that are not covered by the comparison groups and the assessment methodology related thereto, be decided and submitted to the Fund Performance Assessment Committee (FPAC) by the Pension Monitoring Center (PMC), and the method approved by the committee and the lists of funds be announced to the public,
- Fund performance be monitored in real time by PMC, and performance measurement and assessment be conducted by the methodology announced to the public in the relevant performance period,
- Performance results of the funds that are considered relatively successful or unsuccessful be announced to the public within 15 business days following the assessment period, by PMC,
- Rewards or penalties be given
to funds based on their performance assessment results.
Basic Stakeholders of Fund Performance Monitoring and Assessment System, and Their Duties
The Ministry of Treasury and Finance
- Making policies and strategies for the industry
- Regulating and overseeing the operations of pension companies and individual pension intermediaries
- Assessing the performance of funds, and giving opinions about the procedures and principles regarding the incentives and measures applicable to portfolio managers and sharing them with the Capital Markets Board of Turkey
The Capital Markets Board of Turkey (CMB)
- Regulating and overseeing the operations of pension mutual funds
- Assessing the performance of funds, and defining the procedures and principles regarding the incentives and measures applicable to portfolio managers
Pension Monitoring Center (PMC)
- Ensuring that the Individual Pension System operates properly and securely, and protecting the rights and interests of participants
- Overseeing the operations of pension companies, individual pension intermediaries and pension mutual funds
- Defining and presenting to the FPAC the fund comparison groups to be included in the fund performance monitoring and assessment system, funds that are not covered by the comparison groups and performance assessment methods for them.
- Announcing FPAC decisions to the founders of funds (pension companies), presenting the objections to the FPAC, submitting them to the CMB if an objection is not resolved, and announcing the final outcome to the public on the website
- Monitoring and assessing the performance of all funds, and identifying and announcing the relatively successful and relatively poor performance funds each year
- Making the notifications necessary for the funds to be rewarded or penalized, and following up the processes
Pension Companies (Fund Founders)
- Ensuring that pension mutual funds are managed prudently and carefully, taking necessary internal control and audit measures
- Submitting to the FPAC the objections related to the grouping and methodology as reported to them by PMC
- Implementing the incentives and measures to the relevant portfolio management companies, following the notifications made by the PMC
- Reporting recommendations for improving the system to the PMC
Portfolio Management Companies
- Managing the funds carefully and prudently
- Managing funds for maximum performance in full compliance with the legislation and internal regulations
- Reporting recommendations for improving the system to the PMC
Fund Performance Assessment Committee (FPAC)
- Making final decisions related to the fund comparison groups suggested by the PMC
- Defining the performance assessment methodology for funds within the framework defined in the Pension Mutual Funds Guidelines (Guidelines)
- Processing and resolving the objections or implementing suggestions made by pension companies