Turkey's economic pain felt as far as Tennessee
SEE ALSO :Turkey urged to cut duty on Kenyan teaStill, the investment was a small part of the fund, which at the end of its fiscal year on June 30 had a value estimated at $49.7 billion and an annual return of 8.19 percent, according to data the fund provided. “We own thousands of things and there are going to be a bunch that will go wrong and this is one of those,” said Brakebill. TCRS invested in the iShares Turkey fund in 2012, it said. The retirement system had a strategy of building up a passive portfolio of single-country ETFs so it could exclude countries that ranked poorly on third-party indexes of corruption and democracy. That meant excluding the largest emerging market, China, according to one of the fund’s investment reports. The portfolio weights individual country ETFs by their market size relative to the overall benchmark. TCRS said it did not take an active position, either positively or negatively, on Turkey. “This particular incident doesn’t make us rethink the strategy,” said Brakebill. “It is part and parcel with what we walk through in the risks involved with emerging markets.” In a separate email, Brakebill added that with a rapidly growing population of 80 million, Turkey embodies the “potentials and risks of emerging market investments,” although he said the retirement system had been “disappointed” with its investments in the country.