Akportföy sees the opportunity in crisis .hurriyet2008-detailbox-newslink { font-family: Arial, Helvetica, sans-serif; font-size:13px; font-weight:bold; text-decoration:none; color:#000000;} .hurriyet2008-detailbox-newslink:hover { font-family: Arial, Helvetica, sans-serif; font-size:13px; font-weight:bold; text-decoration:underline; color:#990000;} ISTANBUL - Principal Protected Notes, or PPNs, which were created to provide both security and potential growth for accounts, started to pay off for its investors in Turkey.

Guarantee is what lieas beneath the PPNs, which are "hybrid" securities that combine a fixed income note with a derivative typically linked to an equities index or other assets. Typically, PPNs guarantee 100 percent of invested capital, as long as the note is held to maturity. That means, regardless of market conditions, investors receive back all the money they invested. Part of the structured investment products category, PPNs can be linked to a broad range of underlying investments, including indexes, mutual funds, baskets of mutual funds, baskets of equities and even alternative offerings such as hedge funds.

Akportföy, which manages those PPN types of funds, has grabbed much attention with a yield of 73.3 percent. "Those who invested in this product received a stroke of luck in an environment of crisis," said Akportföy General Director Cem Yalçınkaya, who also revealed that the company was planning to introduce two news funds focused on protecting investments.

Providing protection
The Akbank B type PPN introduced to investors by Akportföy at the end of 2007, was aimed to provide a 100 percent protection for the investors. Akbank B type funds was set to provide a yield for its investors by shorting the IMKB-30 index, formed by the 30 leading companies trading at the Istanbul Stock Exchange.

When the investment on the fund was implemented IMKB-30 stood at 71.122 points. By the end of fund’s maturing term, the bourse had deteriorated to 31.014 points. No one had anticipated such drop at the beginning of 2008. " We as Akportföy had foreseen that the bourse would display a declining trend and invested in PPN. We directed our customers to these funds. Those who participated obtained very successful results," said Yalçınkaya.