Turkish Capital Markets

(1)

Turkish Capital Markets

December 2019

(2)

23 Turkish Capital Markets Association

Investment Institutions

Structure of the Turkish Financial Markets

Turkish Capital Markets

Investor Profile CONTENTS

15

47

3

70

(3)

STRUCTURE OF THE

TURKISH CAPITAL MARKETS

(4)

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 - BISTECH).

2016: TCMA arbitration committees established.

Tukey Wealth Fund established

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REGULATORY STRUCTURE OF THE FINANCIAL MARKETS

5

Capital Markets Insurance

Banking Regulation and

Supervision Agency (BRSA) Capital Markets Board (CMB) Insurance and Private Pension Regulation and Supervision Agency

-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 -Payment Companies

-Electronic Money Companies -Rating, Audit Firms

-Financial Holding 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 -Public and Listed Companies -Rating, Appraisal, Audit Firms

-Insurance Association of Turkey -Insurance Companies

-Pension Companies Banking

(6)

CAPITAL MARKET INSTITUTIONS IN TURKEY

Rating Co.

Ind. Audit Co.

Settlement &

Custody Bank (Takasbank)

Capital Markets Board

Banks Brokerage Firms

Inv. Trusts Asset Mgmt. ^Co.

(SRO) TCMA Borsa

Istanbul

Central Registry

Agency Public Co.

Listed Co.

Licensing and Training

Agency

(7)

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.

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BORSA ISTANBUL

• 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.

• 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 and swap transactions.

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.

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

(9)

TAKASBANK (ISTANBUL SETTLEMENT AND CUSTODY BANK)

9

• 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, debt securities and swap markets.

o The national numbering agency of Turkey.

• It operates a money market.

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

• It serves as a custodian to private pension system.

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

• The Bank allocates the legal entity identifier codes.

• It records leveraged transactions and handles collateral management as

an authorized trade repository institution.

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MERKEZI KAYIT ISTANBUL – CSD OF TURKEY

• 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,

government debt holdings (excluding investment institutions), real estate sertificates and electronic warehouse receipts.

• Operates the Public Disclosure Platform.

• Runs various electronic services for investors and public companies such as; Investor Notification and Alert System (eCAS), Companies

Information Portal (e-Company), Electronic General Assembly (e-GEM),

Corporate Management and Investor Relations Portal (e-Governance),

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INVESTOR COMPENSATION CENTRE

11

• 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 (~$ 31,000) in 2019, in case of liquidation or bankruptcy of investment institutions.

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

Compensation Centre.

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ACTIVITIES OF INTERMEDIARIES

• 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

(13)

TYPES OF BROKERAGE FIRMS

13

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.

(14)

ASSET MANAGEMENT COMPANIES

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.

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TURKISH CAPITAL MARKETS ASSOCIATION

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TCMA

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

• Brokerage firms, banks, asset management companies, and investment trusts are members of the Association.

• Founded in April 2001 according to the Capital Markets Law.

• Membership base expanded in 2014 with new law.

• Membership is mandatory.

• Under CMB supervision.

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MEMBERS

17

95 88 80 78 74

44 43

44 44 44

46 52

50 56 54

47 48

48 49 49

2015 2016 2017 2018 2019

Investment Trusts Asset Management Firms Banks Brokerage Firms

222 227

231 221

232

(18)

AIMS

• 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.

(19)

FUNCTIONS

19

• 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.

(20)

ORGANISATION

Chairman (Board of Directors)

Secretary General

Assistant Secretary

General

Discipline

Committee 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

(21)

INTERNATIONAL MEMBERSHIPS

21

• 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.

(22)

PARTICIPATIONS

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

(23)

TURKISH CAPITAL MARKETS

(24)

BIST-100 INDEX & TRADING VOLUME

0

2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000

0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000

04-17 05-17 06-17 08-17 09-17 11-17 12-17 02-18 03-18 04-18 06-18 07-18 09-18 10-18 12-18 01-19 03-19 04-19 05-19 07-19 08-19 10-19 11-19

Trading Volume BIST-100 (TL)

Puan Mn. TL

(25)

MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION TL)

25

Source: Borsa Istanbul

555 614 880 795 957

2015 2016 2017 2018 2019/09

(26)

BREAKDOWN OF BORSA ISTANBUL MARKET CAPITALIZATION

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016 2017 2018

Technology Financials Services Industrials

(27)

CONCENTRATION IN THE EQUITY MARKET (MCAP)

27

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

(28)

9,757 5,297 3,919

20,679 149

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

Nasdaq OMXHong KongShanghaiEuronextTokyoNYSE London GroupSaudi ArabiaSouth KoreaOMX NordicPhilippinesSingaporeNSE IndiaShenzhenBSE IndiaIndonesiaOslo BorsDeutscheAustraliaSantiagoMalaysiaThailandTel AvivWarsawMoscowTaiwanMexicoSwissSpainBrazilTMXJSE Borsa IstanbulHoChiMinhTehran

DOMESTIC MARKET CAPITALIZATION (2018, BILLION $)

Rank: 33

(29)

MARKET CAPITALIZATION/GDP (2018)

29

Source: WFE, IMF

1,052%235%205%

198%

19%

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

Hong KongSingaporeMalaysiaThailandTaiwanTokyoSwissNYSETMXJSE OMX NordicAustralia South KoreaPhilippinesNSE IndiaBSE IndiaEuronextSantiagoJamaica London GroupNew ZealandSaudi ArabiaNasdaq OMXLuxembourgCasablancaKazakhstanHoChiMinhIndonesiaOslo BorsBarbadosDeutscheColombiaShanghaiMauritiusPanamaTel AvivWarsawMoscowBahrainAmmanCroatiaTunisiaTehranWienerMuscatMexicoSpainBrazilMaltaLimaIrish Borsa Istanbul

Rank: 52

(30)

301 289 289 295 298

68 69

63 58 57

22 18 18 18 13

39 38 41 43 45

2015 2016 2017 2018 2019/09

Real Estate/Venture Capital Investment Trusts/Funds ETF+Inv. Trusts

430 414 411 414 413

NUMBER OF SECURITIES IN THE EQUITY MARKET

Equities: BIST Main+BIST Star

(31)

5,066 3,657 3,383 3,058 3,006 378

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

BSE IndiaTokyoTMX Nasdaq OMXSpain London GroupSouth KoreaOMX NordicHong KongSingaporeNSE IndiaShenzhenIndonesiaShanghaiDeutscheEuronextAustraliaMalaysiaThailandTel AvivWarsawTaiwanWienerTaipeiNYSE Borsa IstanbulHoChiMinhHanoiBrazilJSE

NUMBER OF LISTED COMPANIES (2018)

31

Source: WFE

Rank: 26

Excluding Funds, Investment Trusts and Pre-Market Trading Platform

(32)

EQUITY TRADING VOLUME OF BORSA ISTANBUL (BILLION TL)

555 614 880 795 957

2015 2016 2017 2018 2019/09

(33)

419

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

Nasdaq OMX NYSE BATS US BATS Chi-x Europe Shenzhen Tokyo Shanghai London Group South Korea Hong Kong Deutsche Euronext TMX NSE India Swiss Taiwan Australia OMX Nordic Brazil Spain JSE Borsa Istanbul Thailand Taipei Saudi Arabia

11,786 16,036 43,656 22,941

EQUITY TRADING VOLUME (2018, BILLION $)

33

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

(34)

447%316%

293%

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

Nasdaq OMXShenzhenTaipei Borsa IstanbulLondon GroupSaudi ArabiaSouth KoreaOMX NordicOMX NordicHong KongHoChiMinhOslo BorsShanghaiDeutscheEuronextAustraliaThailandHungaryTel AvivMoscowTaiwanAthensTokyoSpainSwissBrazilNYSEIrishTMXJSE

281%

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

Rank: 4

(35)

EQUITY LENDING/BORROWING (BILLION TL)

35

Source: Takasbank

5.6

7.4

13.0

14.2

15.8 2015 2016 2017 2018 2019/09

(36)

SHORT SELLING IN BORSA ISTANBUL

178 170 184 185 88

17% 17%

13%

9%

6%

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

2015 2016 2017 2018 2019/09

Short Selling Volume (bn. TL) Share in Total Volume

(37)

MARGIN TRADING

37

Source: TCMA

1.5 1.5 2.1 1.8 2.3

9,585 9,390

10,670 12,101

11,387

2015 2016 2017 2018 2019/09

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

(38)

FUTURES TRADING VOLUME OF BORSA ISTANBUL

567 580 829 1,249 1,005

88 100

139

232

269

2015 2016 2017 2018 2019/09

Futures Trading Volume (bn. TL) No. of Contracts (million)

(39)

1,399,262 419,172

118,080 269

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

Chicago Mercantile Exchange BM&FBOVESPA Eurex Deustche Boerse Australia CFFEX- China Hong Kong Montreal Euronext Korea Zhengzhou CE ICE (US) Osaka Singapore NSE-India OMX Nordic Taiwan Futures Exchange Asia-Pasific Moscow MCX-India Spain Johannesburg

BSE India Borsa Istanbul Buenos Aires

85,167 36,124

TRADING VOLUME IN FUTURES MARKETS (2018, BILLION $)

39

Source: WFE

Rank: 24

(40)

NUMBER OF LISTED CORPORATE BONDS IN BORSA ISTANBUL

464 519

662 611

489

2015 2016 2017 2018 2019/09

(41)

7,968 6,450 3,923 611

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

BSE India South Korea London Group Shanghai Deutsche NSE India Luxembourg JSE Moscow Taipei Buenos Aires Swiss Tel Aviv Panama Shenzhen Euronext Borsa Istanbul Colombia Lima OMX Nordic Hong Kong Brazil Oslo Bors Tunisia Kazakhstan

8,739 3,201 3,124

NUMBER OF LISTED CORPORATE BONDS (2018)

41

Source: WFE

Rank: 17

(42)

FIXED INCOME TRADING VOLUME (BILLION TL)

485

634 581 594

439 38

26

38 71

56

2015 2016 2017 2018 2019/09

Corporate Bonds

Government Bonds

666

523 496

661

619

(43)

BIST REPO-REVERSE REPO AND TAKASBANK MONEY MARKET TRADING VOLUME (BILLION TL)

43

Source: Borsa Istanbul, Takasbank

3,536

7,064

4,733 4,706

10,696

257

428

609 856

412

2015 2016 2017 2018 2019/09

Takasbank Money Market BIST Repo-Reverse Repo

5,562

11,108

3,793

7,492

5,342

(44)

INITIAL PUBLIC OFFERINGS

119 343 1,254 5,419 161

6

2

3

9

4

2015 2016 2017 2018 2019/09

IPO Volume (mn. TL) No. of IPOs

(45)

EQUITY FINANCING

45

0.1 0.3 1.3

5.4

0.2

2.0 1.6

3.8

9.6

5.6

2015 2016 2017 2018 2019/09

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

5.9

2.1 2.0

5.1

15.0

(46)

CORPORATE DEBT SECURITIES ISSUANCE

80 90 130 179 165

621

760

1,217

1,385

1,012

2015 2016 2017 2018 2019/09

Size of Corporate Bonds Issued (bn. TL) No. of Corporate Bonds Issued

(47)

INVESTMENT INSTITUTIONS

(48)

942

1,125

1,027 1,095

818 117

184

196 193

132

2015 2016 2017 2018 2019/09

Brokerage Firms Banks

950 1,059

1,308

1,223 1,289

FIXED INCOME TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

(49)

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

49

Excluding Central Bank and Takasbank.

14,700

13,546

6,177 5,512

13,710 1,614

1,331

1,177

1,138

3,775

2015 2016 2017 2018 2019/09

Brokerage Firms Banks

17,485 16,315

14,877

7,354

6,650

(50)

EQUITY TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

2,052 2,027

2,773

3,626

2,587 163

361

250

2015 2016 2017 2018 2019/09

Banks Brokerage Firms 3,987

2,837 2,936

2,027 2,052

(51)

FUTURES TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

51

Source: Borsa Istanbul Excluding Central Bank.

1,131 1,154

1,628

2,424

1,923

5 4

6

31

74

2015 2016 2017 2018 2019/09

Banks

Brokerage Firms

2,010

1,135 1,160

1,658

2,499

(52)

FOREX TRADING VOLUME (BILLION TL)

9,546

12,245

4,667 4,494

3,107 7,459

9,604

3,912 5,211

2,718

2015 2016 2017 2018 2019/09

Liquidity Provider Client

5,825 9,705

8,578 21,850

17,005

(53)

CONCENTRATION IN TRADING VOLUMES (2019/09)

53

Source: Borsa Istanbul, TCMA

65% 68% 66%

82%

20% 24%

20%

15% 7% 15%

14%

4%

Equity Fixed Income Futures Forex (Customer)

51+ 21-50 11-20 1-10

No. of Intermediaries

(54)

TOP 10 MEMBERS IN THE MARKETS (2019/09)

Equity Market Futures Market

1 YAPI KREDİ YATIRIM 13% 1 YAPI KREDI YATIRIM 16%

2 MERRILL LYNCH 9% 2 IS YATIRIM 12%

3 İŞ YATIRIM 8% 3 GARANTI YATIRIM 8%

4 GARANTİ YATIRIM 7% 4 QNB FINANS YATIRIM 6%

5 AK YATIRIM 7% 5 TEB YATIRIM 5%

6 GEDİK YATIRIM 5% 6 DENIZ YATIRIM 4%

7 A1 CAPİTAL YATIRIM 4% 7 AK YATIRIM 4%

8 QNB FİNANS YATIRIM 4% 8 GEDIK YATIRIM 3%

9 YATIRIM FİNANSMAN 4% 9 TACIRLER YATIRIM 3%

10 DENİZ YATIRIM 4% 10 GCM YATIRIM 3%

Total (bn. TL) 2,837 Total (bn. TL) 2,010

Fixed Income Market Forex Market (Customer)

1 HSBC BANK 12% 1 AK YATIRIM 16%

2 YAPI VE KREDİ BANKASI 9% 2 İŞ YATIRIM 15%

3 TÜRK EKONOMİ BANKASI 9% 3 İNTEGRAL YATIRIM 10%

4 TÜRKİYE İŞ BANKASI 8% 4 GCM MENKUL 9%

5 TÜRKİYE GARANTİ BANKASI 8% 5 MEKSA YATIRIM 8%

6 AKBANK T. 5% 6 DENİZ YATIRIM 6%

7 ING BANK 5% 7 A1 CAPİTAL YATIRIM 4%

8 JPMORGAN CHASE BANK 5% 8 İNFO YATIRIM 4%

9 CITIBANK 4% 9 GEDİK YATIRIM 4%

10 FİNANSBANK 3% 10 QNB FİNANS YATIRIM 3%

Total (bn. TL) 950 Total (bn. TL) 3,107

(55)

NUMBER OF FINALIZED CORPORATE FINANCE DEALS (BROKERAGE FIRMS ONLY)

55

Source: TCMA

608 702

1,020

1,216

888 34

90

96

97

68 87

72

80

88

56

6

2

4

17

3

11

15

22

23

15

2015 2016 2017 2018 2019/09

Other Financing Privatization M&A

Pay Halka Arzı Corporate Actions Other Consultancy Bond Issuance

1,228

883 746

1,456

1,035

(56)

INSTITUTIONAL INVESTMENTS (BILLION TL)

37 44 ⁵⁹ 57

48 58 102

80 93

115

0.3

0.3 0.4

0.3

21

24

27 18

20

1.3

1.1

2.6 1.5

1.9

2015 2016 2017 2018 2019/09

Venture Capital Inv. Trusts REITs

Investment Trusts Pension Funds Mutual Funds

169

240

108

128

170

(57)

ASSET MANAGEMENT BY BROKERAGE FIRMS

57

Source: TCMA

1.3 1.3 1.9 2.1 3.6

2,649

3,674

4,085

4,331

4,654

2015 2016 2017 2018 2019/09

Assets Under Management (mn. TL) No. of Investors

(58)

ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES

101 122 158 173 245

2,688

3,082

3,344

3,475 3,422

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

2015 2016 2017 2018 2019/09

Assets Under Management (bn. TL) No. of Investors

(59)

CONCENTRATION IN ASSET MANAGEMENT COMPANIES (2019/09)

59

Source: TCMA

66%

83% 87%

99%

20%

14% 8%

1%

14% 3% 5%

Mutual Funds Pension Funds Discretionary Asset Man. Investment Trusts

10+ 6-10 1-5

Number of Asset Management Companies

(60)

TOP 5 MEMBERS IN PORTFOLIO MANAGEMENT ACTIVITIES (2019/09)

Mutual Funds Pension Funds

1 İŞ PORTFÖY 21% 1 ZİRAAT PORTFÖY 21%

2 ZİRAAT PORTFÖY 16% 2 AK PORTFÖY 19%

3 AK PORTFÖY 12% 3 İŞ PORTFÖY 17%

4 YAPI KREDİ PORTFÖY 11% 4 GARANTİ PORTFÖY 13%

5 GARANTİ PORTFÖY 6% 5 YAPI KREDİ PORTFÖY 13%

Total (million TL) 101,969 Total (million TL) 115,378

Discretionary Asset Management Investment Trusts

1 ZİRAAT PORTFÖY 32% 1 İŞ PORTFÖY 44%

2 AK PORTFÖY 20% 2 METRO PORTFÖY 35%

3 İŞ PORTFÖY 17% 3 HEDEF PORTFÖY 8%

4 AZİMUT PORTFÖY 11% 4 GARANTİ PORTFÖY 7%

5 İSTANBUL PORTFÖY 7% 5 OYAK PORTFÖY 5%

Total (million TL) 27,305 Total (million TL) 602

(61)

BROKERAGE FIRMS’ BRANCH NETWORK

61

Source: TCMA

6,712 9,261 9,361 9,387 9,404

323

310 291 289 284

76

59 40 46 59

2015 2016 2017 2018 2019/09

Bank Branches Branches Rep. Offices

9,747 9,692

9,630

7,111

9,722

(62)

BROKERAGE FIRMS’ EMPLOYEES

3,845 3,735

2,811 2,841 2,810

2,787 2,743

1,940 2,075 2,029

2015 2016 2017 2018 2019/09

Male Employees Female Employees

4,839 4,916

4,751 6,478

6,632

(63)

ASSET MANAGEMENT COMPANIES’ EMPLOYEES

63

Source: TCMA

432 445 475 498 477

266 275 260 279

270

2015 2016 2017 2018 2019/09

Male Employees Female Employees

777 747 720 735

698

(64)

BALANCE SHEET OF BROKERAGE FIRMS (BILLION TL)

14.2

20.1

21.9 20.4

26.2

15.3

21.2

23.1 21.9

28.0

4.0 4.3 4.7 6.2 7.0

2015 2016 2017 2018 2019/09

Current Assets Total Assets Shareholders' Equity

(65)

INCOME STATEMENT OF BROKERAGE FIRMS (MILLION TL)

65

Source: TCMA

2,001 2,175

2,510

3,557

3,071

301 332

774

1,422

1,311

433 483

799

1,343 1,247

2015 2016 2017 2018 2019/09

Total Revenues Operating Profit Net Profit

(66)

BREAKDOWN OF BROKERAGE FIRMS’ REVENUES (MILLION TL)

1,332 1,511 1,435

1,928

1,361

89 106 302

343

170 164 240 699

323

271

360 358

485

904

697

2015 2016 2017 2018 2019/09

Brokerage Commissions Proprietary Trading Profits Corporate Finance Asset Management Others

3,071

2,001

3,557

2,510 2,175

(67)

BALANCE SHEET OF ASSET MANAGEMENT COMPANIES (MILLION TL)

67

Source: TCMA

472

571

698

863 889

507

609

740

918

985

456

552

664

809 857

2015 2016 2017 2018 2019/09

Current Assets Total Assets Shareholders' Equity

(68)

INCOME STATEMENT OF ASSET MANAGEMENT COMPANIES (MILLION TL)

296

347

439

524

430

88 105

165 188

154

91 111

165

232

190

2015 2016 2017 2018 2019/09

Total Revenues Operating Profit Net Profit

(69)

BREAKDOWN OF ASSET MANAGEMENT COMPANIES’ REVENUES (MILLION TL)

69

Source: TCMA

177 211

282

358 326

91

99

121

99 ₇₁

4

5

3

22

20

24

32

31

2015 2016 2017 2018 2019/09

Discretionary Asset Mgmt. Fund Sales

Financial Advisory Investment Trust Mgmt.

Pension Fund Mgmt. Mutual Fund Mgmt.

499 434

337 294

435

(70)

INVESTOR PROFILE

(71)

BREAKDOWN OF TOTAL SAVINGS (BILLION TL)

71

Source: BRSA, CRA, TCMA calculations

1,245 1,453 1,711 2,036 2,362

574

627

734

830

1,045

226

247

355

315

385

2015 2016 2017 2018 2019/09

Equities

Fixed Income Deposits

2,045

2,327

2,800

3,792

3,181

(72)

SAVINGS OF DOMESTIC INVESTORS

Total Domestic Inv. Savings as of

67% 69% 68% 69% 67%

28% 27% 26% 27% 29%

5% 5% 5% 4% 4%

2015 2016 2017 2018 2019/09

Equities

Fixed Income

Deposits

(73)

SAVINGS OF FOREIGN INVESTORS

73

Source: BRSA, CRA, TCMA calculations Total Foreign Investors’ Savings as of September 2019: TL 508 bn

26% 27% 27% 33% 33%

30% 28% 25%

22% 19%

44% 45% 48% 45% 49%

2015 2016 2017 2018 2019/09

Equities

Fixed Income

Deposits

(74)

NUMBER OF EQUITY INVESTORS

(thou.) 2015 2016 2017 2018 2019/09

Domestic Investors 1,049.2 1,031.3 1,081.3 1,169.2 1,165.2 1,043.5 1,025.9 1,076.1 1,163.3 1,159.4

5.0 4.7 4.6 5.2 5.0

0.7 0.7 0.7 0.8 0.8

Foreign Investors 9.8 9.5 9.6 9.7 9.7

6.2 6.2 6.2 6.5 6.5

1.5 1.4 1.5 1.5 1.5

2.1 1.9 1.9 1.8 1.7

Total 1,059.0 1,040.8 1,090.9 1,178.9 1,174.9 Dom. Individuals

Dom. Corporations Dom. Institutionals

Number of Equity Investors

Source: CRA

For. Individuals

For. Corporations

For. Institutionals

(75)

BREAKDOWN OF MARKET CAPITALIZATION (BILLION TL)

75

Source: CRA, Borsa Istanbul

85 89 123 111 137

141 157

232 204 248

329 368

525

479

572

2015 2016 2017 2018 2019/09

Privately Held

Foreigners' Portfolio Domestics' Portfolio

957

555

614

880

795

(76)

SHARE OF FOREIGN INVESTORS

0%

4%

8%

12%

16%

20%

24%

28%

32%

36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2015 2016 2017 2018 2019/09

Share in Free Float Mcap (left) Share in Trading Volume (right) MCap Vol.

(77)

EQUITY OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

77

Source: CRA

Total equity portfolio as of September 2019: TL 385 bn

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019/09

For. Other

For. Corporation

For. Individual

Dom. Other

Dom. Corporation

Dom. Individual

(78)

BREAKDOWN OF EQUITY TRADING VOLUME BY INVESTOR CATEGORIES

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019/09

For. Institutional

For. Corporation

For. Individual

Dom.

Institutional

Dom. Corporation

Dom. Individual

(79)

NUMBER OF CORPORATE BOND INVESTORS

79

2015 2016 2017 2018 2019/09

Domestic Investors 135,690 96,771 81,865 77,671 71,831

131,798 93,217 78,954 75,361 69,427

3,197 2,886 2,292 1,660 1,746

695 668 619 650 658

Foreign Investors 1,066 705 622 662 480

1,034 677 594 641 461

24 25 24 18 16

8 3 4 3 3

Total 136,756 97,476 82,487 78,333 72,311

Dom. Corporations

Source: CRA

Dom. Institutionals For. Individuals For. Corporations For. Institutionals

Number of Corporate Bond Investors

Dom. Individuals

(80)

CORPORATE BOND OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019/09

For. Other

For. Corporation

For. Individual

Dom. Other

Dom. Corporation

Dom. Individual

(81)

MUTUAL FUND INVESTORS

81

Source: CRA

38.9 45.1 56.4 52.8 97.3

2.9 2.9

3.0

2.9

3.0

2.5 2.6 2.7 2.8 2.9 3.0 3.1

- 20.0 40.0 60.0 80.0 100.0 120.0

2015 2016 2017 2018 2019/09

Portfolio Size (bn. TL)

Number of Investors (mn.)

(82)

48.0 60.8

77.8 87.9

108.0 1.8

4.6

7.3

6.0 6.6

6.6

10.3

PP 6.8 AE 5.2

- 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0

- 20.0 40.0 60.0 80.0 100.0 120.0 140.0

2015 2016 2017 2018 2019/09

Total Portfolio Size (bn. TL) Portfolio Size (bn. TL)

Number of Investors (mn.)

PENSION FUND INVESTORS

PP: Voluntary private pension schemes

(83)

BREAKDOWN OF FUTURES TRADING VOLUME BY INVESTOR CATEGORIES*

83

Source: TCMA *Brokerage firms and investment banks only

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019/09

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

(84)

FOREX TRADING VOLUME OF BROKERAGE FIRMS

0%

20%

40%

60%

80%

100%

2015 2016 2017 2018 2019/09

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

(85)