Evaluation of private pension companies performance on private pension funds in Turkey

Private pension is a system to maintain individuals a comfortable retirement period based on the principal of legal obligation or voluntariness. Privatepension system is complementary to social security system or based on voluntariness. This system prevents lack of welfare loss in the retirement period and provides economic returns in the long run. The governments support private pension system due to the contributions to economy and the complementary benefits with the incentives. The objective of this study is to evaluate the performance of ten private pension companies operating in Turkey on their investment funds and to help individuals about their selection of private investment company. For this reason, ten private pension companies are evaluated. Evaluation is made by comparing five conventional pension mutual funds. All the data used in this study is taken from the web site of Capital Markets Board. Quarterly returns of five pension mutual funds for the period from January 2014 and January 2018 are calculated. Average value of quarterly returns are used. Data are analyzed using two multi-criteria decision-making model that are TOPSIS and PROMETHEE methods. Allianz Yaşam ve Emeklilik has the best fund performance according to both methods. Vakıf Emeklilik ve Hayat has the lowest performance according to TOPSIS method and Axa Hayat ve Emeklilik has the lowest performance according to PROMETHEE method.