The financial performance of the Turkish Sovereign Wealth Fund for 2017 and 2022

Abstract

After the Second World War, the economic conjuncture of the world experienced a deep transformation because of the economic crisis. Sovereign Wealth Funds are one of the tools to overcome the negative impacts of economic crises by states. At first look, they seem only a weapon of different regimes of states; on the other hand, they are beneficial tools for suffering economies. It is learned from the Norwegian example that most democratic countries can use them, especially in governing natural resources and added-value forms such as technology and sustainability-based industries. This research concentrates on the Turkish Sovereign Wealth Fund by investigating its Return on Assets and Return on Equity Structure with a Monte Carlo Simulation Model. By doing so, it aims to analyse a special period of 2017 and 2022 for Turkey regarding the economic crises. At the end of the research, it was found that the Turkish Sovereign Wealth Fund suffered from negative developments in this period, and its income structure was abolished for a while, but under the impact of positive financial flexibility, it regained its optimal form. At the end of the analysis, the importance of a good governance structure and mechanisms such as accountability and transparency are suggested to the state or government.