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Amid a profit run, TEB Asset Management gears up for its ESG push

TEB Asset Management has a strong focus on Environmental, Social and Governance principles within its investment strategies, including gender diversity

Established in 1999, TEB Asset Management (‘TEB AM’) is currently one of Turkey’s leading asset management companies. Its main shareholder is TEB Group and it operates as a joint venture with BNP Paribas. TEB specialises in the areas of mutual funds and pension funds, and discretionary portfolio management for high-net-worth individuals and institutional clients, apart from issuing investment advisories.

While addressing the financial needs of the institutional investors, qualified investors and distribution channels, TEB follows a ‘Careful Investment Approach’, where detailed investment procedure, combined with the venture’s Turkish market expertise, its in-house research department, up-to-date database and international risk management standards all come into the play.

The synergy TEB has with BNP Paribas Asset Management, one of Europe’s leading asset managers, has continued to accelerate its progress in becoming a strong local player, supported by a successful global partner, and by the end of 2022 Assets Under Management had risen to USD 2.48 billion.

In 2021, TEB Asset Management witnessed a net profit of USD 1.4 million and USD 1.7 billion USD AuM (Assets Under Management), with a market share of 2.66% in mutual funds and 5.63% in pension funds. By the end of August 2022, the profit ratio had reached the USD 1.9 billion mark.

“As TEB Asset Management, we believe that Turkey offers above-average return opportunities because it is a developing market. We believe that these opportunities can be revealed and significant relative returns can be created with an active portfolio management that understands global and local market dynamics, deep market experience and a disciplined investment process,” remarked the venture, while explaining its investment philosophy.

Apart from portfolio management, TEB Asset Management provides tailored mutual funds solutions like ‘Thematic Funds’, ‘Money Market Funds’, ‘Precious Metal Funds’, ‘Hedge Funds’, ‘Term Hedge Funds’ and ‘Stock Funds’, apart from extending its services in the fields of ‘Pension Funds’ and ‘Foreign Investment Funds’.

A Renewed Focus On The ESG Front

TEB Asset Management has a strong focus on Environmental, Social and Governance (‘ESG’) principles within its investment strategies, including gender diversity. In 2023, the venture also launched a “women-first-themed” fund, focused on gender equality and equal representation in professional life.

TEB has now launched a fund to address the social aspect of its commitment to ESG, in collaboration with a local university, Bahçeşehir Üniversitesi.

According to TEB AM CEO Yağız Oral, the women-first-themed fund aims to support economic and social development by strengthening gender equality and equal representation in professional life.

“We aspire to transform the investment ecosystem towards the goal of equality & inclusion by encouraging companies to contribute to a holistic framework of social development. We believe investing in a mutual fund that prioritises gender equality can promote diversity and fairness in corporate leadership, ultimately leading to better financial performance and societal progress,” Yağız Oral said.

Talking about TEB, in 2021, it launched a sustainability fund of funds. The initiative has emerged as one of the thematic funds launched by the venture during the past three years to meet investor needs as the mutual fund landscape evolves. Themes include the metaverse and digital technology, agriculture and food technology, healthcare and biotechnology and precious metals.

Yağız Oral mentioned further, “We continuously search for new ideas to keep up with the changing world and we keep a close eye on investor needs. One of the most important points that differentiates us from our peers is the strength of our relationship with BNPP AM’s global teams, meaning that we can take advantage of them, enabling us to invest in a wide range of products globally. Our rigorous investment approach combines international standards with in-house research, local expertise, and global cooperation and risk procedures.”

Overall, TEB AM has recognised the growing importance of ESG in the investment landscape and of incorporating sustainability in its investment philosophy. By doing so, it is able to provide investors with the solutions they need to achieve their financial goals while prioritising their values and beliefs.

“By incorporating ESG principles into our investment strategies, we aim to meet the growing demand for sustainable investing options and create long-term value for our clients. As the asset management sector continues to evolve, we remain committed to meeting the changing needs of investors and ensuring that our clients can invest with confidence in a rapidly transforming world,” Yağız Oral concluded.

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