Silver Participation Pension Investment Fund (KGC)

Katilim Emeklilik has launched Turkiye’s first pension fund offering investors exposure to silver within a fully Shariah compliant framework. The fund, inaugurated on the 26^th September 2025, complements existing participation-based Sukuk and money market funds.

“Silver, one of the most popular commodities of recent times, continues to generate returns for investors,” Ismail Aydemir, deputy general manager of Katilim Emeklilik, shared with IFN Investor.

He said silver is not only a precious metal but also an industrial metal. “Over the past year, prices have risen 40% in US dollar terms, 32% over six months, and 14% in the past month. Strong demand from industries such as renewable energy, electronics and electric vehicles, combined with investors’ search for safe-haven assets, are key drivers behind this growth.”

Developed in response to rising interest in precious metals, KGC invests at least 80% of its portfolio in instruments linked to silver, designed to closely track global price movements. These may include domestic and international ETFs aligned with Islamic finance principles, as well as participation fund units.

Up to 50% of the fund can be allocated to foreign capital market instruments, enabling international diversification while maintaining Shariah compliance.

Exposure to other precious metals, including gold, is capped at 20% of the portfolio, and the fund may also incorporate Sukuk, participation accounts and other Islamic investment instruments to enhance liquidity and income stability.

The fund’s benchmark comprises 90% of the Borsa Istanbul Precious Metals and Gems Market Silver Weighted Average Price (TRY) rate of change, 5% of the BIST-KYD 1-Month Profit Share TRY Index and 5% of the BIST-KYD Private Sector Lease Certificates TRY Index. This composition ensures that fund performance aligns with global precious metal trends while supporting the broader objectives of Islamic finance.

Managed by Kuveyt Turk Portfolio Management, KGC launched with an initial price of TRY0.01 (US$0.0003) per unit and a total fund size of TRY10 billion (US$330 million). The seed capital of TRY3 million (US$98,000) kickstarted the fund’s operations.

With KGC, Katilim Emeklilik expands its portfolio to 20 participation-based funds under Turkiye’s pension system, reinforcing its commitment to ethical, diversified and innovation-driven investment solutions for the Islamic savings market.

*Disclaimer: The opinions and viewpoints expressed in this Fund Profile do not constitute as recommendations for any fund highlighted. The information presented is not investment advice and should not be treated as such.