October 2018 - TSPB

Turkish Capital Markets October 2018

24

2

Turkish Capital Markets Association

Investment Institutions

Structure of the Turkish Financial Markets

Turkish Capital Markets

Investor Profile

CONTENTS

16

43

3

67

STRUCTURE OF THE TURKISH CAPITAL MARKETS

CAPITAL MARKETS BACKGROUND

1982: Capital Markets Board established. 1985: Istanbul Stock Exchange (ISE) established. 1992: Takasbank (Settlement & Custody Bank) established. 1995: Istanbul Gold Exchange (IGE) established. 1997: Banks are forbidden to trade equities. 2001: Association of Capital Markets Intermediary Institutions of Turkey established. Central Registry Agency established. Investors' Protection Fund established. 2002: Private pension system introduced. 2005: IFRS adopted for financial intermediaries and listed companies. Turkish Derivatives Exchange (TurkDex) established. Dematerialization of equities completed. 2006: Dematerialization of corporate bonds & mutual funds completed. 2009: Automated Disclosure Platform introduced. Istanbul International Financial Centre strategy announced. 2011: Forex regulation passed. 2012: New Capital Markets Law passed. ISE demutualised and merged with Istanbul Gold Exchange under Borsa Istanbul. 2013: Borsa Istanbul announced strategic partnership with Nasdaq. Borsa Istanbul and TurkDex merged. 2014: The structure of the Association has changed and the membership base was expanded to cover asset management companies and investments trusts, in addition to brokerage firms and banks. The name of the Association was revised to Turkish Capital Markets Association. 2015: Takasbank introduced the Electronic Fund Distribution Platform (TEFAS). Borsa Istanbul introduced new trading platform for equities (BISTECH). 2016: TCMA arbitration committees established. Türkiye Wealth Fund established 2017: Auto-enrollment in the private pension system introduced.

4

REGULATORY STRUCTURE OF THE FINANCIAL MARKETS

5

Banking Capital Markets Insurance

Banking Regulation and Supervision Agency (BRSA) Capital Markets Board (CMB) Undersecretariat of Treasury

-Banks’ Association of Turkey -Participation Banks’ Association of Turkey-Association of Financial Institutions-Banks-Participation Banks-Savings Deposit Insurance Fund-Leasing Companies-Factoring Companies-Consumer Finance Companies-NPL Management Companies

-Turkish Capital Markets Association-Borsa Istanbul-Turkish Appraisers Association

-Banks-Brokerage Firms-Asset Management Firms-Investment Trusts-Central Registry Agency-Settlement and Custody Bank-Capital Markets Licensing and Training Agency-Investor Compensation Center

-Insurance Association of Turkey-Insurance Companies-Private Pension Companies-Private Pension Funds

CAPITAL MARKET INSTITUTIONS IN TURKEY

6

Rating Co.Ind. Audit Co.

Settlement & Custody Bank (Takasbank)

Capital Markets Board

Banks Brokerage Firms

Inv. TrustsAsset Mgmt. Co.

TCMA(SRO)

Borsa Istanbul

Central Registry Agency

Public Co.

Listed Co.

Licensing and Training Agency

CAPITAL MARKETS BOARD

7

• Capital Markets Board (CMB) is the main regulatory and supervisory authority for the securities markets and institutions in Turkey.

• The Board is responsible for the protection of rights and interests of investors.

• The CMB’s jurisdiction areas:

o Primary markets,

o Secondary markets,

o Investment services.

BORSA ISTANBUL

8

• Borsa Istanbul, formerly named as Istanbul Stock Exchange, was established in 1985.

• The exchange was demutualised in 2013.

• The exchanges operating in Turkey, namely Istanbul Stock Exchange, Istanbul Gold Exchange and the Turkish Derivatives Exchange merged under the roof of Borsa Istanbul.

• Borsa Istanbul and NASDAQ OMX signed a partnership agreement in 2013. Technological infrastructure is provided by NASDAQ OMX.

• European Investment Bank acquired a 10% share in 2015.

BORSA ISTANBUL

9

• The main markets and the traded securities on Borsa Istanbul are:

o Equity Market: Shares, rights coupons, ETFs, warrants, certificates.

o Debt Securities Market: Government bonds, corporate bonds, asset backed securities, Islamic bonds, repo-reverse repo transactions, Turkish eurobonds, money market.

o Derivatives Market: Single stock, equity index, gold, currency, commodity, overnight repo, metal, ETF and power futures. Single stock, currency, equity index and mini index options.

o Precious Metals and Diamond Market: Gold, silver, platinum and palladium.

TAKASBANK (ISTANBUL SETTLEMENT AND CUSTODY BANK)

10

• Takasbank was established in 1988 as a department of Borsa Istanbul. It was incorporated as a separate company in 1992 and became a non-deposit taking bank in 1995.

• Takasbank is:

o The clearing and settlement centre for Borsa Istanbul,

o The central counterparty (CCP) for Borsa Istanbul Futures & Options Market,

o The national numbering agency of Turkey.

• It operates a money market.

• Takasbank operates the Securities Lending & Borrowing Market and acts as the CCP for this market as well as the Borsa Istanbul Money Market.

• The Bank allocates the legal entity identifier codes.

• It operates the Electronic Fund Distribution Platform (TEFAS).

• It records leveraged transactions and handles collateral management as an authorized trade repository institution.

MERKEZI KAYIT ISTANBUL – CSD OF TURKEY

11

• Merkezi Kayit Istanbul – CSD of Turkey was established in 2001 as a private company.

• It is the only central depository for all dematerialized capital market instruments.

• The dematerialization process is completed for equities, mutual funds, corporate bonds, warrants, certificates, asset backed securities and investors’ (excluding investment institutions) government debt holdings.

INVESTOR COMPENSATION CENTRE

12

• Investors’ Protection Fund, which covered equity settlement obligations, was established in 2001.

• Investor Compensation Centre replaced the Investors’ Protection Fund in 2013 with the renewed Capital Market Law.

• It covers settlement obligations of all capital market instruments, up to TL 143,604 (~$ 40,000) in 2018, in case of liquidation or bankruptcy of investment institutions.

• All investment institutions have to be a member of the Investor Compensation Centre.

ACTIVITIES OF INTERMEDIARIES

13

• Equity Trading* • Leveraged FX trading • Public Offering* • Asset Management • Investment Consultancy

• Fixed Income Trading • Derivatives Trading (exc. equity-linked

products for banks) BANKS

BROKERAGE

FIRMS

*Authorized activities for Investment Banks

TYPES OF BROKERAGE FIRMS

14

Market Makers

Execution Brokers

Introducing Brokers

• execution of orders from their own account by positioning their customers as counterparty

• minimum capital: TL 26 million.

• execution of orders of in the name of customers and/or their own account

• offering custody services • minimum capital: TL 10 million.

• reception of orders and transfer them to other brokers

• minimum capital: TL 2 million.

ASSET MANAGEMENT COMPANIES

15

Portfolio Management Companies

Real Estate Portfolio

Management Companies

Venture Capital Portfolio

Management Companies

• May establish stock, bond, balanced mutual funds

• Mn. capital required varies btw. TL 2 million and 10 million depending on AUM.

• May establish only real estate investment funds

• Mn. capital required varies btw. TL 1 million and TL 5 million depending on AUM.

• May establish only venture capital investment funds

• Mn. capital required varies btw. TL 1 million and TL 5 million depending on AUM.

TURKISH CAPITAL MARKETS ASSOCIATION

TCMA

17

• Founded in April 2001.

• It is a self-regulatory professional organization in the Turkish capital markets.

• The structure of the Association was changed and its name was revised to Turkish Capital Market Association in 2014, in line with the new Capital Markets Law.

• TCMA is under CMB supervision.

• Association has 224 members as of October 2018; 78 brokerage firms, 44 banks, 53 portfolio management companies, 9 securities investment trusts, 33 real estate investment trusts, and 7 venture capital investment trusts.

MEMBERS

18

97 95 88 80 78

43 4443

44 44

40 46 5250 53

46 47 4848 49

2014 2015 2016 2017 2018/09

Investment Trusts Asset Management Firms Banks Brokerage Firms

224222231

226232

AIMS

19

• Contribute to the development of the capital market

• Meet the collective needs of members and facilitate solidarity among its members,

• Prevent unfair competition between its members,

• Enhance know-how in the sector.

FUNCTIONS

20

• Establish code of ethics for the profession,

• Establish professional rules and regulations,

• Conduct research,

• Offer educational programs,

• Assist in the resolution of disputes,

• Cooperate with related foreign institutions,

• Engage in financial literacy activities.

ORGANISATION

21

Chairman(Board of Directors)

Secretary General

Assistant Secretary General

DisciplineCommittee

Board of Auditors

Research & Statistics

Information Technologies

Corporate Communications Training Compliance &

Surveillance Legal Affairs Human

Resources, Administrative & Financial Affairs


Membership Affairs


INTERNATIONAL MEMBERSHIPS

22

• Asia Securities Forum (ASF) member since 2009.

• OECD International Network on Financial Education (INFE) affiliate member since 2015.

• International Council of Securities Associations (ICSA) member since 2006.

• International Forum for Investor Education (IFIE) member since 2009. International Forum for Investor Education/Asia Chapter founding member since 2010.

• International Organization of Securities Commissions (IOSCO) affiliate member since 2003.

PARTICIPATIONS

23

CENTRAL REGISTRY AGENCY

• 5% stake

• one seat at the board of directors, out of 8 members

BORSA ISTANBUL

• 1.3% stake

• one seat at the board of directors, out of 10 members

CAPITAL MARKETS LICENSING & TRAINING AGENCY

• 49% stake

• 2 seats at the board of directors, out of 7 members

TURKISH CAPITAL MARKETS

BIST-100 INDEX & TRADING VOLUME

25

Source: Borsa Istanbul

0

2,000

4,000

6,000

8,000

10,000

12,000

0

20,000

40,000

60,000

80,000

100,000

120,00001

-13

04-1

3

08-1

3

12-1

3

04-1

4

08-1

4

12-1

4

04-1

5

07-1

5

11-1

5

03-1

6

07-1

6

11-1

6

03-1

7

06-1

7

10-1

7

02-1

8

06-1

8

Trading Volume BIST-100 (TL)

Point Mn. TL

MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION TL)

26


627 555 614 880801

2014 2015 2016 2017 2018/09

BREAKDOWN OF BORSA ISTANBUL MARKET CAPITALIZATION

27


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 2017

Technology

Financials

Services

Industrials

CONCENTRATION IN THE EQUITY MARKET (MCAP)

28


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 2017

1-10 11-25 26-50 51-100 100+

No. of Equities

10,0396,2235,090

22,081

228

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000

NYSENasdaq OMX

TokyoShanghai

London GroupEuronext

Hong KongShenzhen

TMXNSE IndiaBSE IndiaDeutsche

South KoreaSwiss

OMX NordicAustralia

JSETaiwan

BrazilSpain

SingaporeMoscowThailand

IndonesiaMalaysia

Saudi ArabiaMexico

SantiagoPhilippinesOslo Bors

Tel AvivBorsa Istanbul

WarsawWiener

Irish

DOMESTIC MARKET CAPITALIZATION (2017, BILLION $)

29

Source: WFE WFE definition excludes investment funds, ETFs, unit trusts, unlisted companies,

holding companies with a mere business of holding shares on the exchange.

Rank: 32

1,302%358%257%248%

27%

0% 40% 80% 120% 160% 200%

Hong KongJSE

SingaporeSwiss

TaiwanMalaysia

TMXTokyo

ThailandOMX Nordic

South KoreaNYSE

SantiagoAustralia

LuxembourgEuronext

London GroupNSE IndiaBSE India

PhilippinesMauritius

QatarOslo Bors

SpainSaudi Arabia

Tel AvivBahrain

DeutscheCasablancaHoChiMinh

Nasdaq OMXIndonesia

LimaNew Zealand

BrazilIrish

MaltaShanghai

MoscowColombiaWarsawWienerMexico

AmmanAbu DhabiShenzhen

MuscatKazakhstan

DubaiBorsa Istanbul

MARKET CAPITALIZATION/GDP (2017)

30

Source: WFE, IMF

Rank: 50

NUMBER OF SECURITIES IN THE EQUITY MARKET

31

Source: Borsa Istanbul Equities: BIST Main+BIST Star

Other Equities: BIST Emerging Companies, Watchlist, Pre-market Trading Platform

311 301 289 289 296

65 68 69 63 58

24 22 18 18 18

37 39 38 41 43

2014 2015 2016 2017 2018/09

Real Estate/Venture Capital Investment Trusts/FundsETF+Inv. TrustsOther EquitiesEquities

437 430414 411 415

3,8783,6043,3283,136

375

0 500 1,000 1,500 2,000 2,500 3,000

BSE IndiaTokyo

TMXSpain

Nasdaq OMXLondon Group

NYSEAustralia

South KoreaHong KongShenzhenNSE IndiaShanghaiEuronext

OMX NordicTaiwan

MalaysiaSingapore

TaipeiThailand

IndonesiaWiener

DeutscheTel Aviv

Borsa IstanbulJSE

HoChiMinhBrazil

TehranColombo

NUMBER OF LISTED COMPANIES (2017)

32

Source: WFE

Rank: 25

Excluding ETFs and investment trusts

EQUITY TRADING VOLUME OF BORSA ISTANBUL (BILLION TL)

33


8731,023 1,014

1,468 1,527

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2014 2015 2016 2017 2018/09

395

0 2,000 4,000 6,000 8,000 10,000

Nasdaq OMXNYSE

BATS USShenzhenShanghai

BATS Chi-x…Tokyo

London GroupEuronext

Hong KongSouth Korea

DeutscheTMX

SwissNSE IndiaAustralia

OMX NordicTaiwan

SpainBrazil

JSEBorsa Istanbul

ThailandMoscow

Taipei

12,302

33,40716,140

EQUITY TRADING VOLUME (2017, BILLION $)

34

Source: WFE WFE definition excludes investment funds, ETFs, unit trusts,

holding companies with a mere business of holding shares on the exchange. Negotiated deals are included.

Rank: 22

333%253%227%

0% 40% 80% 120% 160% 200%

Nasdaq OMXShenzhen

TaipeiBorsa Istanbul

ShanghaiSouth Korea

London GroupTokyoSpain

OMX NordicNYSEBrazil

DeutscheEuronextAustralia

SwissThailand

TMXSaudi Arabia

Hong KongMoscow

Oslo BorsNSE India

HoChiMinhIrish

WarsawHungary

EgyptJSE

New Zealand

174%

TURNOVER RATIO (EQUITY TRADING VOLUME/MARKET CAPITALIZATION - 2017)

35

Source: WFE

Rank: 4

SECURITIES LENDING/BORROWING IN BORSA ISTANBUL (MILLION TL)

36

Source: Takasbank

6,296

5,565

7,423

12,97010,187

2014 2015 2016 2017 2018/09

SHORT SELLING IN BORSA ISTANBUL

37


138 178 170 184 156

16%17%

17%

13%

10%

0%

5%

10%

15%

20%

25%

0

4

8

12

16

20

24

28

32

36

40

44

48

52

56

60

64

68

72

76

80

84

88

92

96

100

104

108

112

116

120

124

128

132

136

140

144

148

152

156

160

164

168

172

176

180

184

188

192

196

2014 2015 2016 2017 2018/09

Short Selling Volume (bn. TL)

Share in Total Volume

MARGIN TRADING

38

Source: TCMA

1,148 1,507 1,465 2,122 2,199

9,914 9,914 9,585

10,67011,518

2014 2015 2016 2017 2018/06

Outstanding Loan Size (mn. TL) No. of Contracts

FUTURES TRADING VOLUME OF BORSA ISTANBUL

39

Source: Borsa Istanbul, TurkDex

435 567 580 829 985

59

88

100

139

174

2014 2015 2016 2017 2018/09

Futures Trading Volume (bn. TL)

No. of Contracts (million)

1,103,634413,14374,612

225

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

Chicago Mercantile…ICE (Europe)

BM&FBOVESPADeustche Boerse

ASX SFE DerivativesMontreal

LME-LondonOsakaKorea

ICE (US)Dalian CE-China

Hong KongCFFEX- China

NSE-IndiaZhengzhou CE

EuronextTaiwan Futures…

Nasdaq OMXMoscow

MCX-IndiaSpain

JSEBSE India

Malasysia DEBorsa Istanbul

64,120

TRADING VOLUME IN FUTURES MARKETS (2017, BILLION $)

40

Source: WFE

Rank: 25

NUMBER OF LISTED CORPORATE BONDS IN BORSA ISTANBUL

41

Source: WFE

436 464519

662739

2014 2015 2016 2017 2018/06

6,7026,4695,690

662

0 1,000 2,000 3,000 4,000 5,000

South KoreaBSE India

London GroupIrish

OMX NordicEuronext

NSE IndiaShanghai

SpainWiener

Oslo BorsJSE

Buenos AiresMoscow

TaipeiHong Kong

SwissTel Aviv

Borsa IstanbulColombiaShenzhen

WarsawLima

BrazilKazakhstan

7,696

5,3215,026

NUMBER OF LISTED CORPORATE BONDS (2017)

42

Source: WFE

Rank: 19

INITIAL PUBLIC OFFERINGS

43


714 119 343 1,254 5,419

13

6

2

3

9

2014 2015 2016 2017 2018/09

IPO Volume (mn. TL) No. of IPOs

EQUITY FINANCING

44


714 119 343 1,254

5,419

1

2,6601,966

1,645

3,809

8,279

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2014 2015 2016 2017 2018/09

Rights IssueIPO

3,556 3,331

2,148

5,063

13,698

CORPORATE DEBT SECURITIES ISSUANCE

45


66 80 90 130 129

517

621

760

1,217

1,056

2014 2015 2016 2017 2018/09

Size of Corporate Bonds Issued (bn. TL)

No. of Corporate Bonds Issued

INVESTMENT INSTITUTIONS

FIXED INCOME TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

47

Source: Borsa Istanbul Excluding Central Bank and Takasbank.

1,141

942

1,1251,027

849

117

117

184

196

154

2014 2015 2016 2017 2018/09

Brokerage Firms

Banks1,257

1,059

1,308

1,223

1,003

REPO-REVERSE REPO TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

48

Source: Borsa Istanbul Excluding Central Bank and Takasbank.

13,22914,700

13,546

6,1774,112

1,397

1,614

1,331

1,177

284

2014 2015 2016 2017 2018/09

Brokerage Firms Banks

14,626

16,315

14,877

7,354

4,948

EQUITY TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

49


1,7462,045 2,027

2,773 2,767

163 286

2014 2015 2016 2017 2018/09

Banks

Brokerage Firms 2,9363,053

FUTURES TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

50

Source: Borsa Istanbul, TurkDex

8651,131 1,154

1,6281,914

5

4 6

31

56

2014 2015 2016 2017 2018/09

Banks

Brokerage Firms

988659886598865988659886598865988659886598865988659886598865

869

1,135 1,160

1,658

1,970

FOREX TRADING VOLUME (BILLION TL)

51

Source: TCMA

4,353

9,54612,245

4,6672,152

3,340

7,459

9,604

3,912

1,769

2014 2015 2016 2017 2018/06

Liquidity Provider

Client

7,693

3,921

8,578

21,850

17,005

CONCENTRATION IN TRADING VOLUMES (2018/09)

52

Source: Borsa Istanbul, TCMA Note: Forex trading volume data as of 2018/06 period

62% 67% 72% 77%

24%22% 16%

18%

14% 11% 11%5%

Equity Fixed Income Futures Forex

51+ 21-50 11-20 1-10No. of Intermediaries

TOP 10 MEMBERS IN THE MARKETS (2018/09)

53

Source: Borsa Istanbul, TCMA Note: Forex trading volume data as of 2018/06 period

Equity Market Futures Market

1 YAPI KREDİ YATIRIM MENKUL DEĞERLER A.Ş. 10% 1 YAPI KREDI YATIRIM MENKUL DEGERLER A.S. 15%2 MERRILL LYNCH YATIRIM BANK A.Ş. 9% 2 IS YATIRIM MENKUL DEGERLER A.S. 13%3 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 8% 3 TEB YATIRIM MENKUL DEGERLER A.S. 9%4 GARANTİ YATIRIM MENKUL KIYMETLER A.Ş. 7% 4 GARANTI YATIRIM MENKUL DEGERLER A.S. 9%5 AK YATIRIM MENKUL DEĞERLER A.Ş. 6% 5 QNB FINANS YATIRIM MENKUL DEGERLER A.S. 7%6 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 5% 6 AK YATIRIM MENKUL DEGERLER A.S. 6%7 A1 CAPITAL YATIRIM MENKUL DEĞERLER A.Ş. 5% 7 DENIZ YATIRIM MENKUL KIYMETLER A.S. 4%8 YATIRIM FİNANSMAN MENKUL DEĞERLER A.Ş. 4% 8 GEDIK YATIRIM MENKUL DEGERLER A.S. 3%9 TEB YATIRIM MENKUL DEĞERLER A.Ş. 4% 9 A1 CAPITAL MENKUL DEGERLER A.S. 3%10 DENİZ YATIRIM MENKUL KIYMETLER A.Ş. 4% 10 TACIRLER YATIRIM MENKUL DEGERLER A.S. 3%

Total (bn. TL) 3,053 Total (bn. TL) 1,970

Fixed Income Market Forex Market

1 AKBANK A.S. 16% 1 AK YATIRIM MENKUL DEĞERLER A.Ş. 17%2 T. GARANTI BANKASI A.S. 12% 2 GCM MENKUL KIYMETLER A.Ş. 14%3 HSBC BANK A.S. 7% 3 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 12%4 T. ISBANKASI A.S. 6% 4 MEKSA YATIRIM MENKUL DEĞERLER A.Ş. 8%5 TURK EKONOMI BANKASI A.S. 6% 5 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 7%6 YAPI KREDI BANKASI A.S. 5% 6 IŞIK MENKUL DEĞERLER A.Ş. 7%7 JP MORGAN CHASEBANK NAT.ASS.MRK.COL.O.IST.TU 4% 7 DENİZ YATIRIM MENKUL KIYMETLER A.Ş. 5%8 DEUTSCHE BANK A.S. 4% 8 İNTEGRAL YATIRIM MENKUL DEĞERLER A.Ş. 4%9 AK YATIRIM MENKUL DEGERLER A.S. 4% 9 QNB FİNANS YATIRIM MENKUL DEĞERLER A.Ş. 3%10 CITIBANK A.S. 4% 10 ŞEKER YATIRIM MENKUL DEĞERLER A.Ş. 3%

Total (bn. TL) 1,003 Total (bn. TL) 3,921

NUMBER OF FINALIZED CORPORATE FINANCE DEALS (BROKERAGE FIRMS ONLY)

54

Source: TCMA

465608

702

1,020

658

63

34

90

96

54

83

87

72

80

50

14

6

2

4

1411

15

22

11

2014 2015 2016 2017 2018/06

Other Financing

Privatization

M&A

IPO&SPO-Equities

Corporate Actions

Other Consultancy

Bond Issuance

883

746

644

1,228

793

INSTITUTIONAL INVESTMENTS (BILLION TL)

55

Source: Borsa Istanbul, TCMA

33 37 4459 64

3848

58

8084

0.3

0.3

0.3

0.40.3

22

21

24

2723

1.5

1.3

1.1

2.6 1.6

2014 2015 2016 2017 2018/06

Venture Capital Inv. Trusts REITs

Investment Trusts Pension Funds

Mutual Funds

169

94

108

128

173

ASSET MANAGEMENT BY BROKERAGE FIRMS

56

Source: TCMA

5,375 1,267 1,341 1,904 2,683

2,9232,649

3,696

4,1023,907

2014 2015 2016 2017 2018/06

Assets Under Management (mn. TL)

No. of Investors

ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES

57

Source: CMB, TCMA

81,848 100,995 121,666 158,127 167,785

2,277

2,688

3,082

3,344

3,658

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2014 2015 2016 2017 2018/06

Assets Under Management (mn. TL)

No. of Investors

BROKERAGE FIRMS’ BRANCH NETWORK

58

Source: TCMA

7,071 5,763 8,297 8,392 8,402

150

323

310 291 291

71

67

76 59 41

2014 2015 2016 2017 2018/06

Bank Branches Branches Rep. Offices

8,7368,666

6,162

7,288

8,723

BROKERAGE FIRMS’ EMPLOYEES

59

Source: TCMA

5,657

6,632 6,478

4,751 4,818

2014 2015 2016 2017 2018/06

ASSET MANAGEMENT COMPANIES’ EMPLOYEES

60

Source: TCMA

698720 735

767

2015 2016 2017 2018/06

BANKS’ EMPLOYEES

61

Source: BRSA

216,912 217,504 210,886 208,280 208,878

2014 2015 2016 2017 2018/06

BALANCE SHEET OF BROKERAGE FIRMS (BILLION TL)

62

Source: TCMA

14.1 14.2

20.121.9

23.0

15.1 15.3

21.223.1

24.3

3.7 4.0 4.3 4.7 5.1

2014 2015 2016 2017 2018/06

Current Assets Total Assets Shareholders' Equity

INCOME STATEMENT OF BROKERAGE FIRMS (MILLION TL)

63

Source: TCMA

1,587

2,0012,175

2,510

1,604

281 301 332

774 694

372 433 483

799695

2014 2015 2016 2017 2018/06

Total Revenues Operating Profit Net Profit

BREAKDOWN OF BROKERAGE FIRMS’ REVENUES (MILLION TL)

64

Source: TCMA

1,0171,332

1,511 1,435

856

78

89

106 302

157

136

170164

240

205

308

360358

485

356

2014 2015 2016 2017 2018/06

Brokerage Commissions Proprietary Trading Profits Corporate FinanceAsset Management Others

1,587

2,001

1,604

2,510

2,175

BALANCE SHEET OF ASSET MANAGEMENT COMPANIES (MILLION TL)

65

Source: TCMA

472

571

698 681

507

609

740 743

456

552

664 671

2015 2016 2017 2018/06

Current Assets Total Assets Shareholders' Equity

INCOME STATEMENT OF ASSET MANAGEMENT COMPANIES (MILLION TL)

66

Source: TCMA

296

347

439

249

88105

165

9191111

165

106

2015 2016 2017 2018/06

Total Revenues

Operating Profit

Net Profit

BREAKDOWN OF ASSET MANAGEMENT COMPANIES’ REVENUES (MILLION TL)

67

Source: TCMA

177211

282

182

91

99

121

49

4

4

4

2

22

20

24

13

0

50

100

150

200

250

300

350

400

450

500

2015 2016 2017 2018/06Eksen Başlığı

Discretionary Asset Mgmt. Fund SalesFinancial Advisory Investment Trust Mgmt.Pension Fund Mgmt. Mutual Fund Mgmt.

INVESTOR PROFILE

BREAKDOWN OF TOTAL SAVINGS (BILLION TL)

69

Source: BRSA, CRA, TCMA estimates

1,0531,245

1,4531,711 1,899

555

574

627

734

754

249

226

247

355315

2014 2015 2016 2017 2018/06

Equities

Fixed Income

Deposits2,045

2,327

2,800

1,856

2,968

SAVINGS OF DOMESTIC INVESTORS

70

Source: BRSA, CRA, TCMA estimates Total Domestic Inv. Savings as of

2018/06: TL 2.5 trillion

66% 67% 69% 68% 70%

28% 28% 27% 26% 26%

6% 5% 5% 5% 5%

2014 2015 2016 2017 2018/06

Equities

Fixed Income

Deposits

SAVINGS OF FOREIGN INVESTORS

71

Source: BRSA, CRA, TCMA estimates Total Foreign Investors’ Savings as of

2018/06: TL 465 bn

18%26% 27% 27%

34%

36%30% 28% 25%

23%

46% 44% 45% 48%42%

2014 2015 2016 2017 2018/06

Equities

Fixed Income

Deposits

NUMBER OF EQUITY INVESTORS

72

(thou.) 2014 2015 2016 2017 2018/09Domestic Investors 1,065.5 1,049.2 1,031.3 1,081.3 1,163.8

1,059.6 1,043.5 1,025.9 1,076.1 1,157.95.2 5.0 4.7 4.6 5.20.7 0.7 0.7 0.7 0.8

Foreign Investors 9.9 9.8 9.5 9.6 9.66.2 6.2 6.2 6.2 6.41.4 1.5 1.4 1.5 1.42.3 2.1 1.9 1.9 1.7

Total 1,075.4 1,059.0 1,040.8 1,090.9 1,173.4

Dom. IndividualsDom. CorporationsDom. Institutionals

Number of Equity Investors

Source: CRA

For. IndividualsFor. CorporationsFor. Institutionals

BREAKDOWN OF MARKET CAPITALIZATION (BILLION TL)

73

Source: CRA, Borsa Istanbul

90 85 89 123 121

159 141 157

232 199

378329

368

525481

2014 2015 2016 2017 2018/09

Privately Held Foreigners' Portfolio Domestics' Portfolio

627 555614

880

801

SHARE OF FOREIGN INVESTORS

74

Source: CRA, Borsa Istanbul

0%

4%

8%

12%

16%

20%

24%

28%

32%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2014 2015 2016 2017 2018/09

Share in Free Float Mcap (left) Share in Trading Volume (right)

Vol.MCap

EQUITY OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

75

Source: CRA Total equity portfolio as of 2018/09: TL 320 bn

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016 2017 2018/09

For. Other

For. Corporation

For. Individual

Dom. Other

Dom. Corporation

Dom. Individual

BREAKDOWN OF EQUITY TRADING VOLUME BY INVESTOR CATEGORIES *

76

Source: TCMA *Brokerage firms only

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016 2017 2018/06

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

NUMBER OF CORPORATE BOND INVESTORS

77

2014 2015 2016 2017 2018/09Domestic Investors 136,441 135,690 96,771 81,865 80,824

132,132 131,798 93,217 78,954 78,6283,601 3,197 2,886 2,292 1,555

708 695 668 619 641Foreign Investors 1,384 1,066 705 622 678

1,330 1,034 677 594 65536 24 25 24 2018 8 3 4 3

Total 137,825 136,756 97,476 82,487 81,502

Dom. Corporations

Source: CRA

Dom. Institutionals

For. IndividualsFor. CorporationsFor. Institutionals

Number of Corporate Bond Investors

Dom. Individuals

CORPORATE BOND OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

78

Source: CRA Total corporate bond portfolio as of 2018/09: TL 75,8 bn.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016 2017 2018/09

For. Other

For. Corporation

For. Individual

Dom. Other

Dom. Corporation

Dom. Individual

MUTUAL FUND INVESTORS

79

Source: CRA

36.2 38.9 45.1 56.4 54.1

2.8

2.9 2.9

3.0

2.9

2.5

2.6

2.7

2.8

2.9

3.0

3.1

-

10.0

20.0

30.0

40.0

50.0

60.0

2014 2015 2016 2017 2018/09

Portfolio Size (bn. TL)

Number of Investors (mn.)

PENSION FUND INVESTORS

80

Source: PMC PP: Private pension schemes

AE: Auto-enrolment Portfolio size includes government contributions.

37.6 48.0

60.8

77.8 86.9

3.5

7.4

5.1

6.0 6.6

10.3

PP 6.9AE 4.9

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

2014 2015 2016 2017 2018/09

Total Portfolio Size (bn. TL)

Portfolio Size (bn. TL)

Number of Investors (mn.)

BREAKDOWN OF FUTURES TRADING VOLUME BY INVESTOR CATEGORIES*

81

Source: TCMA *Brokerage firms only

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016 2017 2018/06

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

FOREX TRADING VOLUME OF BROKERAGE FIRMS

82

Source: TCMA

0%

20%

40%

60%

80%

100%

2014 2015 2016 2017 2018/06

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

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Documents

October 2018 - TSPB