Turkish pension fund manager to offer silver in broadening investment options

As a significant player in Turkiye’s Shariah compliant pension fund industry, Katilim Emeklilik ve Hayat noted a preference by contributors for investments in gold, Deputy General Manager Dr Ismail Aydemir shared with IFN Investor.

“Examining the preferences of participants investing in [our firm’s] funds, we observe that 50% of their portfolios consist of precious metals and sovereign Sukuk. Equity-focused funds account for 12%, while standard fund investors represent 7%.”

Widely acknowledged as a value-preservation asset, gold holdings gained prominence amid Turkiye’s past economic uncertainties fueled by high inflation and currency depreciation. “Our participants favor gold because it provides reassurance against market volatility.”

As the nation’s economy has attained some stability in recent times, Ismail said the firm expanded its offerings with four new funds launched over the past year: the Short-Term Sukuk Fund, the Sustainability Fund, the Fund Basket Fund and the Technology Sector Fund.

The firm is also offering the Katilim Emeklilik Silver Pension Investment Fund, with a portfolio of at least 80% silver, from the end of September 2025. These launches aim to build on Katilim Emeklilik’s claimed pension market share of 2.84%, with total AuM of over TRY50 billion (US$1.21 billion).

The silver fund – a Shariah first in Turkiye – is part of thematic funds that can be customized for risk profiles. “Participants can adjust their asset allocations at any time using our AI-supported fund recommendations.”

This emphasis on pension funds reflects changes in Turkish regulations introduced since 2024 – where minimum employee contributions were raised by 25%

Beyond pension funds, Katilim Emeklilik introduced ESG-themed pension funds including the sector’s first sustainability-focused participation fund, for individual and corporate clients. Another priority would be green Sukuk investments – aligned with the growing demand for ESG from both.

“For us, ESG is not just a trend but a natural extension of participation finance. We position Katilim Emeklilik as a pioneer that combines Shariah compliance with strong ESG sensitivity.”

While the firm’s core focus is the domestic market, it also provides international access offering clients exposure to broader Islamic capital markets – a mix that allows the balance of local growth with global opportunities.