Turkish Capital Markets May 2019

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. Tukey Wealth Fund established 2017: Auto-enrollment in the private pension system introduced. 2018: Turkey Wealth Fund acquired Nasdaq’s 7% stake in Borsa Istanbul.

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.

• Turkey Wealth Fund acquired Nasdaq’s 7% stake in Borsa Istanbul.

BORSA ISTANBUL

9

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

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

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, BIST Debt Securities Market and BIST SWAP Market

o The national numbering agency of Turkey.

• It operates a money market.

• Takasbank operates the Securities Lending & Borrowing Market 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 177,681 (~$ 33,000) in 2019, 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 27.4 mn.

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

• offering custody services • minimum capital: TL 10.9 mn.

• reception of orders and transfer them to other brokers

• minimum capital: TL 2.2 mn.

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 2.4 million and 12 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 227 members as of December 2018; 78 brokerage firms, 44 banks, 56 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 56

46 47 4848 49

2014 2015 2016 2017 2018

Investment Trusts Asset Management Firms Banks Brokerage Firms

227222

231226

232

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

Assistant Secretary General

Membership Affairs

Assistant Secretary General

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

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

14,000

0

20,000

40,000

60,000

80,000

100,000

120,000

140,00001

-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

10-1

8

Trading Volume BIST-100 (TL)

Point Mn. TL

MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION TL)

26

Source: Borsa Istanbul

627 555 614 880 795

2014 2015 2016 2017 2018

BREAKDOWN OF BORSA ISTANBUL MARKET CAPITALIZATION

27

Source: Borsa Istanbul

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016 2017 2018

Technology

Financials

Services

Industrials

CONCENTRATION IN THE EQUITY MARKET (MCAP)

28

Source: Borsa Istanbul

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016 2017 2018

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

No. of Equities

9,7575,297

3,919

20,679

149

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

NYSENasdaq OMX

TokyoShanghai

Hong KongEuronext

London GroupShenzhenBSE IndiaNSE India

TMXDeutsche

SwissSouth KoreaOMX Nordic

AustraliaTaiwan

BrazilJSE

SpainSingapore

MoscowThailand

Saudi ArabiaIndonesiaMalaysia

MexicoOslo Bors

PhilippinesSantiagoTel AvivWarsaw

Borsa IstanbulTehran

HoChiMinh

DOMESTIC MARKET CAPITALIZATION (2018, 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: 33

1,060%230%203%198%

21%

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

Hong KongJSE

SwissSingapore

TaiwanMalaysia

TMXTokyo

ThailandNYSE

OMX NordicAustralia

South KoreaSantiagoEuronextJamaica

PhilippinesBSE IndiaNSE India

London GroupLuxembourg

MauritiusBarbados

Saudi ArabiaOslo Bors

BahrainCasablancaHoChiMinh

Tel AvivSpain

IndonesiaBrazil

Nasdaq OMXDeutsche

New ZealandLima

MoscowMalta

CroatiaTehranMexico

ColombiaIrish

WarsawShanghai

AmmanWiener

PanamaMuscat

Borsa Istanbul

MARKET CAPITALIZATION/GDP (2018)

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

311 301 289 289 295

65 68 69 63 58

24 22 18 18 18

37 39 38 41 43

2014 2015 2016 2017 2018

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

437 430414 411 414

5,0663,6573,3833,0583,006

378

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

BSE IndiaTokyo

TMXNasdaq OMX

SpainLondon Group

Hong KongNYSE

South KoreaAustralia

ShenzhenNSE IndiaShanghaiEuronext

OMX NordicTaiwan

MalaysiaWarsaw

TaipeiSingapore

ThailandWiener

IndonesiaDeutscheTel Aviv

Borsa IstanbulHanoi

HoChiMinhJSE

Brazil

NUMBER OF LISTED COMPANIES (2018)

32

Source: WFE

Rank: 26

Excluding ETFs and investment trusts

EQUITY TRADING VOLUME OF BORSA ISTANBUL (BILLION TL)

33

Source: Borsa Istanbul

8731,023 1,014

1,468

1,993

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2014 2015 2016 2017 2018

419

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

Nasdaq OMXNYSE

BATS USBATS Chi-x Europe

ShenzhenTokyo

ShanghaiLondon Group

South KoreaHong Kong

DeutscheEuronext

TMXNSE India

SwissTaiwan

AustraliaOMX Nordic

BrazilSpain

JSEBorsa Istanbul

ThailandTaipei

Saudi Arabia

11,78616,036

43,65622,941

EQUITY TRADING VOLUME (2018, 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

447%316%293%

0% 40% 80% 120% 160% 200% 240% 280%

Nasdaq OMXShenzhen

TaipeiBorsa Istanbul

South KoreaShanghai

TokyoDeutsche

London GroupOMX Nordic

NYSETaiwan

SpainBrazil

ThailandAustralia

SwissTMX

OMX NordicHong Kong

EuronextOslo Bors

IrishJSE

HoChiMinhSaudi Arabia

HungaryAthens

Tel AvivMoscow

281%

TURNOVER RATIO (EQUITY TRADING VOLUME/MARKET CAPITALIZATION - 2018)

35

Source: WFE

Rank: 4

SECURITIES LENDING/BORROWING IN BORSA ISTANBUL (BILLION TL)

36

Source: Takasbank

6.3

5.6

7.4

13.0

14.2

2014 2015 2016 2017 2018

SHORT SELLING IN BORSA ISTANBUL

37

Source: Borsa Istanbul

138 178 170 184 185

16%17%

17%

13%

9%

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

Short Selling Volume (bn. TL)

Share in Total Volume

MARGIN TRADING

38

Source: TCMA

1.1 1.5 1.5 2.1 2.1

9,914 9,914 9,585

10,670 11,908

2014 2015 2016 2017 2018/09

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

FUTURES TRADING VOLUME OF BORSA ISTANBUL

39

Source: Borsa Istanbul, TurkDex

435 567 580 829 1,259

59

88100

139

232

2014 2015 2016 2017 2018

Futures Trading Volume (bn. TL)

No. of Contracts (million)

1,399,262419,172118,080

269

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

Chicago Mercantile ExchangeBM&FBOVESPA

EurexDeustche Boerse

AustraliaCFFEX- China

Hong KongMontrealEuronext

KoreaZhengzhou CE

ICE (US)Osaka

SingaporeNSE-India

OMX NordicTaiwan Futures Exchange

Asia-PasificMoscow

MCX-IndiaSpain

JohannesburgBSE India

Borsa IstanbulBuenos Aires

85,16736,124

TRADING VOLUME IN FUTURES MARKETS (2018, BILLION $)

40

Source: WFE

Rank: 24

NUMBER OF LISTED CORPORATE BONDS IN BORSA ISTANBUL

41

Source: WFE

436 464519

662611

2014 2015 2016 2017 2018

7,9686,4503,923

611

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

BSE IndiaSouth Korea

London GroupShanghaiDeutscheNSE India

LuxembourgJSE

MoscowTaipei

Buenos AiresSwiss

Tel AvivPanama

ShenzhenEuronext

Borsa IstanbulColombia

LimaOMX NordicHong Kong

BrazilOslo Bors

TunisiaKazakhstan

8,739

3,2013,124

NUMBER OF LISTED CORPORATE BONDS (2018)

42

Source: WFE

Rank: 17

INITIAL PUBLIC OFFERINGS

43

Source: Borsa Istanbul

714 119 343 1,254 5,419

13

6

2

3

9

2014 2015 2016 2017 2018

IPO Volume (mn. TL) No. of IPOs

EQUITY FINANCING

44

Source: Borsa Istanbul

0.7 0.1 0.3 1.3

5.42.7

2.0 1.6

3.8

9.6

2014 2015 2016 2017 2018

SPO + Rights Issue (bn. TL)IPO (bn. TL)

3,4

2,1 2,0

5,1

15,0

CORPORATE DEBT SECURITIES ISSUANCE

45

Source: Borsa Istanbul

66 80 90 130 179

517

621

760

1,217

1,385

2014 2015 2016 2017 2018

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

9421,125

1,027 1,097

117

117

184196

193

2014 2015 2016 2017 2018

Brokerage FirmsBanks

1,257

1,059

1,3081,223 1,290

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

48

Source: Borsa Istanbul Excluding Central Bank and Takasbank.

13,22914,700

13,546

6,1775,093

1,397

1,614

1,331

1,177

284

2014 2015 2016 2017 2018

Brokerage Firms Banks

14,626

16,315

14,877

7,354

6,130

EQUITY TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

49

Source: Borsa Istanbul

1,7462,045 2,027

2,773

3,626

163

361

2014 2015 2016 2017 2018

Banks

Brokerage Firms

2,936

3,987

FUTURES TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

50

Source: Borsa Istanbul, TurkDex

8651,131 1,154

1,628

2,424

5

4 6

31

93

2014 2015 2016 2017 2018

Banks

Brokerage Firms

988659886598865988659886598865988659886598865988659886598865

869

1,135 1,160

1,658

2,518

FOREX TRADING VOLUME (BILLION TL)

51

Source: TCMA

4,353

9,54612,245

4,667 4,494

3,340

7,459

9,604

3,912 5,211

2014 2015 2016 2017 2018

Liquidity Provider

Client

7,693

9,7058,578

21,850

17,005

CONCENTRATION IN TRADING VOLUMES (2018)

52

Source: Borsa Istanbul, TCMA

62% 64%70%

82%

24% 24% 17%

18%14% 11% 12%0%

Equity Fixed Income Futures Forex (Customer)

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

TOP 10 MEMBERS IN THE MARKETS (2018)

53

Source: Borsa Istanbul, TCMA

Equity Market Futures Market

1 YAPI KREDİ YATIRIM MENKUL DEĞERLER A.Ş. 11% 1 YAPI KREDI YATIRIM MENKUL DEGERLER A.S. 16%2 MERRILL LYNCH YATIRIM BANK A.Ş. 9% 2 IS YATIRIM MENKUL DEGERLER A.S. 12%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. 8%5 AK YATIRIM MENKUL DEĞERLER A.Ş. 6% 5 QNB FINANS YATIRIM MENKUL DEGERLER A.S. 6%6 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 5% 6 AK YATIRIM MENKUL DEGERLER A.S. 5%7 A1 CAPİTAL 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 DENİZ YATIRIM MENKUL KIYMETLER A.Ş. 4% 9 A1 CAPITAL MENKUL DEGERLER A.S. 3%10 QNB FİNANS YATIRIM MENKUL DEĞERLER A.Ş. 4% 10 TACIRLER YATIRIM MENKUL DEGERLER A.S. 3%

Total (bn. TL) 3,987 Total (bn. TL) 2,518

Fixed Income Market Forex Market (Customer)

1 AKBANK A.S. 14% 1 AK YATIRIM MENKUL DEĞERLER A.Ş. 21%2 T. GARANTI BANKASI A.S. 12% 2 GCM MENKUL KIYMETLER A.Ş. 19%3 HSBC BANK A.S. 7% 3 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 13%4 T. ISBANKASI A.S. 6% 4 MEKSA YATIRIM MENKUL DEĞERLER A.Ş. 12%5 YAPI KREDI BANKASI A.S. 6% 5 İNTEGRAL YATIRIM MENKUL DEĞERLER A.Ş. 8%6 DEUTSCHE BANK A.S. 4% 6 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 7%7 JP MORGAN CHASEBANK NAT.ASS.MRK.COL.O.IST.TU 4% 7 IŞIK MENKUL DEĞERLER A.Ş. 6%8 CITIBANK A.S. 4% 8 QNB FİNANS YATIRIM MENKUL DEĞERLER A.Ş. 5%9 TEB YATIRIM MENKUL DEGERLER A.S. 4% 9 DENİZ YATIRIM MENKUL KIYMETLER A.Ş. 5%10 AK YATIRIM MENKUL DEGERLER A.S. 4% 10 ALB MENKUL DEĞERLER A.Ş. 3%

Total (bn. TL) 1,290 Total (bn. TL) 3,703

NUMBER OF FINALIZED CORPORATE FINANCE DEALS (BROKERAGE FIRMS ONLY)

54

Source: TCMA

465608

702

1,02094263

34

90

9678

83

87

72

8068

14

6

2

4

1411

15

2218

2014 2015 2016 2017 2018/09

Other Financing

Privatization

M&A

IPO&SPO-Equities

Corporate Actions

Other Consultancy

Bond Issuance

883

746

644

1,228

1,133

INSTITUTIONAL INVESTMENTS (BILLION TL)

55

Source: Borsa Istanbul, TCMA

33 37 4459 57

3848

58

8093

0.3

0.3

0.3

0.40.3

22

21

24

2718

1.5

1.3

1.1

2.6 1.5

2014 2015 2016 2017 2018

Venture Capital Inv. Trusts REITs

Investment Trusts Pension Funds

Mutual Funds

169

94

108

128

170

ASSET MANAGEMENT BY BROKERAGE FIRMS

56

Source: TCMA

5.4 1.3 1.3 1.9 2.7

2,9232,649

3,674

4,085 3,980

2014 2015 2016 2017 2018/09

Assets Under Management (mn. TL)

No. of Investors

ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES

57

Source: CMB, TCMA

82 101 122 158 173

2,277

2,688

3,082

3,3443,459

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2014 2015 2016 2017 2018

Assets Under Management (bn. TL)

No. of Investors

CONCENTRATION IN PORTFOLIO MANAGEMENT FIRMS (2018)

58

Source: TCMA

62% 68%

82%

98%

30%30%

15%

2%8%2% 2%

Mutual Funds Pension Funds Discretionary Asset Man. Investment Trusts

10+ 6-10 1-5Number of Asset Management Companies

59

Source: TCMA

TOP 5 MEMBERS IN PORTFOLIO MANAGEMENT ACTIVITIES (2018)

Mutual Funds Pension Funds

1 İŞ PORTFÖY YÖNETİMİ A.Ş. 22% 1 İŞ PORTFÖY YÖNETİMİ A.Ş. 17%2 YAPI KREDİ PORTFÖY YÖNETİMİ A.Ş. 13% 2 AK PORTFÖY YÖNETİMİ A.Ş. 16%3 AK PORTFÖY YÖNETİMİ A.Ş. 11% 3 GARANTİ PORTFÖY YÖNETİMİ A.Ş. 14%4 ZİRAAT PORTFÖY YÖNETİMİ A.Ş. 8% 4 YAPI KREDİ PORTFÖY YÖNETİMİ A.Ş. 12%5 GARANTİ PORTFÖY YÖNETİMİ A.Ş. 7% 5 HSBC PORTFÖY YÖNETİMİ A.Ş. 9%

Total (million TL) 56,920 Total (million TL) 93,206

Discretionary Asset Management Investment Trusts

1 ZİRAAT PORTFÖY YÖNETİMİ A.Ş. 31% 1 İŞ PORTFÖY YÖNETİMİ A.Ş. 47%2 İŞ PORTFÖY YÖNETİMİ A.Ş. 19% 2 METRO PORTFÖY YÖNETİMİ A.Ş. 32%3 AK PORTFÖY YÖNETİMİ A.Ş. 18% 3 GARANTİ PORTFÖY YÖNETİMİ A.Ş. 7%4 AZİMUT PORTFÖY YÖNETİMİ A.Ş. 8% 4 HEDEF PORTFÖY YÖNETİMİ A.Ş. 6%5 İSTANBUL PORTFÖY YÖNETİMİ A.Ş. 7% 5 OYAK PORTFÖY YÖNETİMİ A.Ş. 5%

Total (million TL) 22,776 Total (million TL) 515

BROKERAGE FIRMS’ BRANCH NETWORK

60

Source: TCMA

7,071 5,763 8,297 8,392 8,369

150

323

310 291 293

67

76

59 40 45

2014 2015 2016 2017 2018/09

Bank Branches Branches Rep. Offices

8,7078,666

6,162

7,288

8,723

BROKERAGE FIRMS’ EMPLOYEES

61

Source: TCMA

5,657

6,632 6,478

4,751 4,874

2014 2015 2016 2017 2018/09

ASSET MANAGEMENT COMPANIES’ EMPLOYEES

62

Source: TCMA

698 720 735781

2015 2016 2017 2018/09

BANKS’ EMPLOYEES

63

Source: BRSA

216,912 217,504 210,886 208,280 207,716

2014 2015 2016 2017 2018

BALANCE SHEET OF BROKERAGE FIRMS (BILLION TL)

64

Source: TCMA

14.1 14.2

20.121.9

23.3

15.1 15.3

21.223.1

24.8

3.7 4.0 4.3 4.75.6

2014 2015 2016 2017 2018/09

Current Assets Total Assets Shareholders' Equity

INCOME STATEMENT OF BROKERAGE FIRMS (MILLION TL)

65

Source: TCMA

1,587

2,0012,175

2,510 2,452

281 301 332

774

1,075

372 433 483

799

1,105

2014 2015 2016 2017 2018/09

Total Revenues Operating Profit Net Profit

BREAKDOWN OF BROKERAGE FIRMS’ REVENUES (MILLION TL)

66

Source: TCMA

1,0171,332

1,511 1,435 1,311

78

89

106 302

231136

170164

240

274308

360358

485592

2014 2015 2016 2017 2018/09

Brokerage Commissions Proprietary Trading Profits Corporate Finance

Asset Management Others

1,587

2,001

2,4522,510

2,175

BALANCE SHEET OF ASSET MANAGEMENT COMPANIES (MILLION TL)

67

Source: TCMA

472

571

698743

507

609

740814

456

552

664

728

2015 2016 2017 2018/09

Current Assets Total Assets Shareholders' Equity

INCOME STATEMENT OF ASSET MANAGEMENT COMPANIES (MILLION TL)

68

Source: TCMA

296

347

439

359

88105

165

12291

111

165 162

2015 2016 2017 2018/09

Total Revenues

Operating Profit

Net Profit

BREAKDOWN OF ASSET MANAGEMENT COMPANIES’ REVENUES (MILLION TL)

69

Source: TCMA

177211

282264

91

99

121

694

4

4

3

22

20

24

19

0

50

100

150

200

250

300

350

400

450

500

2015 2016 2017 2018/09Eksen Başlığı

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

294

337

434

358

INVESTOR PROFILE

BREAKDOWN OF TOTAL SAVINGS (BILLION TL)

71

Source: BRSA, CRA, TCMA estimates

1,0531,245

1,4531,711 2,036

555574

627

734

830

249226

247

355

315

2014 2015 2016 2017 2018

Equities

Fixed Income

Deposits2,045

2,327

2,800

1,856

3,181

SAVINGS OF DOMESTIC INVESTORS

72

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

2018: TL 2.7 trillion

66% 67% 69% 68% 69%

28% 28% 27% 26% 27%

6% 5% 5% 5% 4%

2014 2015 2016 2017 2018

Equities

Fixed Income

Deposits

SAVINGS OF FOREIGN INVESTORS

73

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

2018: TL 457 bn

18%26% 27% 27%

33%

36%30% 28% 25%

22%

46% 44% 45% 48% 45%

2014 2015 2016 2017 2018

Equities

Fixed Income

Deposits

NUMBER OF EQUITY INVESTORS

74

(thou.) 2014 2015 2016 2017 2018Domestic Investors 1,065.5 1,049.2 1,031.3 1,081.3 1,169.2

1,059.6 1,043.5 1,025.9 1,076.1 1,163.35.2 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 9.76.2 6.2 6.2 6.2 6.51.4 1.5 1.4 1.5 1.52.3 2.1 1.9 1.9 1.8

Total 1,075.4 1,059.0 1,040.8 1,090.9 1,178.9

Dom. IndividualsDom. CorporationsDom. Institutionals

Number of Equity Investors

Source: CRA

For. IndividualsFor. CorporationsFor. Institutionals

BREAKDOWN OF MARKET CAPITALIZATION (BILLION TL)

75

Source: CRA, Borsa Istanbul

90 85 89 123 111

159 141 157

232 204

378329

368

525479

2014 2015 2016 2017 2018

Privately Held Foreigners' Portfolio Domestics' Portfolio

627 555614

880

795

SHARE OF FOREIGN INVESTORS

76

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

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

Vol.MCap

EQUITY OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

77

Source: CRA Total equity portfolio as of December 2018: TL 315 bn

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016 2017 2018

For. Other

For. Corporation

For. Individual

Dom. Other

Dom. Corporation

Dom. Individual

BREAKDOWN OF EQUITY TRADING VOLUME BY INVESTOR CATEGORIES*

78

Source: TCMA *Brokerage firms only

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016 2017 2018/09

For. Institutional

For. Corporation

For. Individual

Dom.Institutional

Dom. Corporation

Dom. Individual

NUMBER OF CORPORATE BOND INVESTORS

79

2014 2015 2016 2017 2018Domestic Investors 136,441 135,690 96,771 81,865 77,671

132,132 131,798 93,217 78,954 75,3613,601 3,197 2,886 2,292 1,660

708 695 668 619 650Foreign Investors 1,384 1,066 705 622 662

1,330 1,034 677 594 64136 24 25 24 1818 8 3 4 3

Total 137,825 136,756 97,476 82,487 78,333Source: CRA

Dom. Institutionals

For. IndividualsFor. CorporationsFor. Institutionals

Number of Corporate Bond Investors

Dom. IndividualsDom. Corporations

CORPORATE BOND OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

80

Source: CRA Total corporate bond portfolio as of December 2018: TL 71.5 bn.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016 2017 2018

For. Other

For. Corporation

For. Individual

Dom. Other

Dom. Corporation

Dom. Individual

MUTUAL FUND INVESTORS

81

Source: CRA

36.2 38.9 45.1 56.4 52.8

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

Portfolio Size (bn. TL)

Number of Investors (mn.)

PENSION FUND INVESTORS

82

Source: PMC PP: Private pension schemes

AE: Auto-enrolment Portfolio size includes government contributions.

37.6 48.0

60.8

77.8 87.9

3.5

8.7

5.1

6.0 6.6

10.3

PP 6.9AE 5.0

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

-

20.0

40.0

60.0

80.0

100.0

120.0

2014 2015 2016 2017 2018

Total Portfolio Size (bn. TL)

Portfolio Size (bn. TL)

Number of Investors (mn.)

BREAKDOWN OF FUTURES TRADING VOLUME BY INVESTOR CATEGORIES*

83

Source: TCMA *Brokerage firms only

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016 2017 2018/09

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

FOREX TRADING VOLUME OF BROKERAGE FIRMS

84

Source: TCMA

0%

20%

40%

60%

80%

100%

2014 2015 2016 2017 2018/09

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

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