The Turkey Wealth Fund (Türkiye Varlık Fonu - TVF) aims at generating $10 billion/year in funds to invest in the domestic petrochemical, mining, and insurance sectors in the coming years, CEO Zafer Sönmez said. TVF, which oversaw $240 billion in assets in 2019, expects borrowing to account for up to half of the new funds. Meanwhile, $1-2 billion will come from foreign direct investment, Sönmez added. The investment will help Turkey to overcome current-account and savings deficits, he noted.
TVF will also set up foreign offices, first in China, then the UK and African countries as it aims to direct 25%-30% of investments abroad. The Turkish government established TVF in 2016 with aims to provide investment resources and develop the value of Turkey’s strategic assets. By the end of 2019, TVF’s holdings in equities totalled roughly $33 billion.
Its portfolio includes investment in flag carrier Turkish Airlines, mobile phone company Turkcell, fixed-line operator Türk Telekom, some mining companies, major domestic banks, insurers, and state energy firms. Sönmez noted that a final investment decision would be made for a petrochemical project in Ceyhan after an ongoing feasibility study which was expected to conclude soon.
