Turkey is considered one top investment destinations in emerging
Europe, and investors may access the market through the
Turkey-related exchange traded fund (
). It isn't just retail investors looking at the country.
Institutional investors are also throwing money into the rapidly
Mark Mobius, Singapore-based chairman of Templeton Asset
Management's emerging markets group, announced that his company
will invest an additional $250 million in Turkish equities on top
of the $1 billion already invested as a result of the highly
attractive nature of Turkey's market,
according to Investment News
. The Turkey ISE National 100 index has increased 24% year-to-date,
the highest among major European gauges, and is set to hit a 20%
advance this quarter. [
Why Turkey's Economy and ETF Are Sitting
Banking, oil and consumer shares are considered the top sectors
in Turkey, remarks Mobius. Turkey didn't have to bail out banks
after the global crisis, and Prime Minister Recep Tayyip Erdogan
said that the country doesn't need external assistance from the
International Monetary Fund to meet its borrowing needs.
Erdogan stated that the "
continues to take giant leap forwards, develop and grow on the
contrary to many other economies in the world,"
according to World Bulletin
Turkey's economy grew by 10.3% in the second quarter. The
unemployment rate dropped to 10.5% in June as economic activity
picked up. The budget deficit was down 54% in the first eight
months of the year, while revenue rose 20%.
For more information on Turkey, visit our
iShares MSCI Turkey Index (NYSEArca: TUR):
The top-weighted sectors are financials (51.6%), industrials
(11.6%) and telecom (10.2%)
For full disclosure, Tom Lydon's clients own shares of
Max Chen contributed to this article.