Debt rating agency Moody’s upgraded Turkey to Investment Grade status (Baa3). Moody’s is the second of the three big ratings agencies to upgrade Turkey to Investment Grade status, following Fitch in November 2012. Standard and Poor’s classification is BB+, one below Investment Grade.

Adam Laird, Passive Investment Manager, comments: “Turkey is an interesting country for investors- its fast growth has earned it the nickname “New Tiger”. It is a vast country rich in resources that is rapidly making its way onto the global market. Turkey is an enterprising country with a strong industrial centre in the Anatolian region. In particular, the country has strong trade links with growing markets in the middle east and Russia. “Investing in Turkey is a specialist investment strategy and not without risks- this is an emerging country with currency risk and the country underperformed Emerging Market peers in 2011. But investors who have ventured here have been rewarded- investors have seen profits of 110 percent in the last 5 years (compared to 45 percent for the FTSE All Share) and 19.59 percent so far in 2013 (compared to 11.66 percent for the FTSE All Share). It can be difficult to access through traditional funds though some European Trackers have a small weighting- the Legal and General European Index Trust holds 1.58 percent in Turkey. There are Exchange Traded Funds (ETFs) which are specifically focused on the Turkish market, like HSBC MSCI Turkey ETF (HTRY) which is a physically replicated fund holding 25 of the largest Turkish companies.”