Today, Türkiye presents a compelling case for investors who seek sustainable, policy-driven real returns in an emerging market undergoing disciplined macroeconomic rebalancing.

In 2024 and early 2025, Türkiye’s economic authorities made substantial progress in restoring price stability, supported by a combination of decisive monetary tightening and a renewed focus on external balance. The Central Bank of the Republic of Türkiye (CBRT) has reaffirmed its commitment to disinflation, taking bold steps to anchor expectations.

In April 2025, the CBRT raised its policy rate to 46%, emphasising that tight monetary conditions will be maintained until a sustained decline in inflation is achieved. Most importantly, this policy stance is backed by a strong preference for exchange rate stability, which plays a crucial role in containing inflation pass-through and rebuilding investor confidence. Market expectations reflect a steady decline in inflation over the coming quarters.

From an investor’s perspective, this macro shift is already translating into opportunities as local currency bonds are now offering positive real returns, especially as inflation expectations begin to decline and nominal yields remain elevated.

Exchange rate volatility has moderated, with options markets pricing in a narrower distribution of future exchange rates, which seems to be another sign of improving confidence. Also, Türkiye’s current account dynamics continue to strengthen, with the gold and energy-excluded balance in surplus and external financing conditions stabilising.

In this environment, short-term liquid funds have emerged as the most attractive vehicle for conservative investors. Given the current policy rate and stable money market yields, these funds provide high nominal returns with minimal duration risk, making them a preferred choice for capital preservation and real yield capture.

On the other end of the spectrum, long-term government bonds offer substantial upside potential, albeit with greater sensitivity to inflation and interest rate expectations. Today, long-dated bond yields in Türkiye remain well above not only current inflation, but also five- and ten-year forward inflation expectations, embedding a large inflation uncertainty premium. However, as disinflation materialises, this uncertainty premium will likely decline much faster than inflation itself, creating room for a significant re-pricing in long-term bond valuations.

TEB Asset Management believes the investment narrative in Türkiye is entering a new phase, one that is less about tactical gains from volatility and more about strategic positioning for real value.

While short-term instruments provide immediate real return, long-term bonds offer convexity and capital gain potential in a scenario where inflation and volatility decline faster than currently expected. A balanced approach, combining high-yielding liquid assets with select long-duration exposure, may prove especially effective in navigating this transition.

Türkiye’s macroeconomic rebalancing is still in progress, but recent trends, including improving inflation dynamics, a more stable currency outlook, and robust monetary policy credibility, provide a supportive backdrop for fixed-income strategies focused on real, sustainable returns.

In a world where real yield is increasingly scarce, Turkish assets offer a rare combination of high carry and policy alignment. For investors ready to look beyond the inflation headlines, this may be the right time to rediscover the strategic value of Türkiye’s fixed-income markets.

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The synergy TEB Asset Management has with BNP Paribas Asset Management (‘BNPP AM’), 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 2023 assets under management had risen to USD 3.42 billion.

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

Alongside its focus on sustainability, TEB Asset Management has also launched a fund to address the social aspect of its commitment to ESG (Environmental, Social, and Governance), 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,” CEO Yağız Oral told International Finance.

TEB Asset Management also launched a sustainability fund of funds in 2021. This was one of a number of thematic funds launched 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.

“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,” CEO Yağız Oral added.

Overall, TEB Asset Management recognises the increasing importance of ESG in the investment landscape and the integration of sustainability into its investment philosophy. By doing so, the venture has been 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.” CEO Yağız Oral concluded.

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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.

The post Amid a profit run, TEB Asset Management gears up for its ESG push appeared first on International Finance.

TEB AM completed 2021 with a net profit of 1.4 million USD and 1.7 billion USD AuM, with a market share of 2.66% in mutual funds and 5.63% in pension funds. By the end of August 2022, it had reached 1.9 billion USD.

The synergy between TEB Asset Management and BNP Paribas Asset Management, one of the Euro Zone’s leading asset managers, accelerates the company’s progress in becoming a global force.

Furthermore, thanks to this collaboration, TEB Asset Management had the chance to launch strategic partnerships with many other international firms.

An essential point that differentiates them from their peers is their highly concentrated integration with BNPP AM global teams. It helps them use the international expertise of BNPP AM in every way and invest in a wide range of products globally.

They also care about sustainability in their investment philosophy and utilise BNP Paribas’s expertise, one of the leading groups sensitive to the ESG approach. In addition, they adopt investments to the ten principles of the United Nations Global Compact, a universal benchmark for assessing companies. Besides ESG sensitivity, TEB AM’s other strong suit is its expertise and success in multi-asset management.

TEB AM CEO Yagız Oral said, “We offer innovative products that aim to provide alternative returns to our investors.”

They have launched five mutual funds between 2021-2022 by examining in detail the themes suitable for the needs of the investors and the general trends in the world. Some of them are the ESG fund, Robo fund, and Metaverse fund. They continuously search for new ideas to keep up with the changing world and closely monitor investor needs.

In this sense, they focus on new technology investments in mutual funds managed by professionals, enabling investors to cover better the investment universe that addresses the theme. For example, their asset management has established the “Metaverse and Digital Technologies Variable Fund”, which transforms the metaverse universe into an investment.

With its innovative asset management approach, TEB AM has recently launched two new mutual funds that can invest in silver and, agriculture & food technologies, aiming to make the most out of the opportunities offered by the domestic and foreign capital markets.

All in all, their main objective is to create an ongoing satisfactory performance in asset management. However, TEB knows that they also have to actively seek more and take the challenge to do better daily with the help of research, sales and marketing, and digital activities.

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