taf pine bridge serkan elden speech

The New Champions

of the Capital World

Serkan ELDENSerkan ELDEN

Turkish Arab Economic Forum

Istanbul

April 26 & 27, 2011

Neither PineBridge Investments (Turkey) Ltd. nor PineBridge Investments Partners LLC or any other company within the PineBridge Investments group of companies (collectively, the “PineBridge Investments

Group”) is licensed to provide investment advisory, marketing or portfolio management in Turkey. This presentation is for general informational purposes only, and is not intended nor shall it be interpreted as an

offer, solicitation or recommendation for investors in any vehicle or product advised by the PineBridge Investments Group nor for advisory services by the PineBridge Investments Group as may be contemplated

by the Turkish Commercial Code and the Turkish Code of Obligations, the Capital Markets Laws and the “Communiqué Regarding the Principles on Venture Capital Investment Trusts” of the Capital Markets Board

of Turkey, or otherwise with respect to the offer, purchase or sale of any security or financial product. No person should act or refrain from acting in reliance on any information provided in this

presentation. Statements of facts and opinions expressed are those of the speaker individually and are not the opinion or position of the PineBridge Investments Group. No undertaking, representation or

warranty, whether express or implied, is given by the PineBridge Investments Group, their shareholders, advisors or any of their directors, partners, officers, employees or agents as to the accuracy or

completeness of the information presented.

Any opinion expressed in this presentation may be subject to change without notice. We are not soliciting or recommending any action based on this material. Investment information and comments stated

here, are not within the scope of investment advisory activity. Investment advisory services is provided in accordance with a contract of engagement for such services and concluded between brokerage houses,

portfolio management companies, non-deposit banks and clients. Comments and recommendations stated here rely on the individual opinions of the ones providing these comments and recommendations.

These opinions may not fit to your financial status, risk and return preferences. For this reason, to make an investment decision by relying solely on the information stated here may not bring about outcomes that fit yourexpectations.

The New Champions of the Capital World

1

Source: http://www.ancient-wisdom.co.uk/pirireismap.htm

EU

World

2

US China

GatewayTurkey, Middle

East, Africa,

Russia/Central

Asia

Population and GDP

GATEWAYGATEWAYGATEWAYGATEWAY

Pop (mn) GDP (US$ tr)

USUSUSUS


469

501

1990 2009

$7.0

$16

1990 2009


EUEUEUEU

CAGR CAGR CAGR CAGR

CAGR CAGR CAGR CAGR

0%0%0%0%

CAGR CAGR CAGR CAGR

4%4%4%4%

3

1Asia includes China and India

Source: IMF, World Bank, January 2011. CAGR - Compound Annual Growth Rate.


249 307

1990 2009

$5.8

$14

1990 2009


ASASASASIIIIAAAA1CAGR CAGR CAGR CAGR

1%1%1%1%CAGR CAGR CAGR CAGR

5%5%5%5% CAGR CAGR CAGR CAGR



1%1%1%1%

CAGR CAGR CAGR CAGR

11%11%11%11%

924

1,4

1990 2009

$1.5

$4.9

1990 2009

1,98 2,48

1990 2009

$0.7

$6.2

1990 2009

Foreign Direct Investment - Net Inflows (US $Bn)

GATEWAYGATEWAYGATEWAYGATEWAY

$321

$134

USUSUSUS

CAGR CAGR CAGR CAGR

----9%9%9%9%

$165

$221

2000 2009

EUEUEUEU

CAGR CAGR CAGR CAGR

3%3%3%3%

ASASASASIIIIAAAA1111

CAGR CAGR CAGR CAGR $112

4

CAGR CAGR CAGR CAGR

25%25%25%25%2000 2009

CAGR CAGR CAGR CAGR

12%12%12%12%

1Asia includes China and India

Source: Eurostat, World Bank. January 2011. CAGR - Compound Annual Growth Rate.

$14

$102

2000 2009

$41

$112

2000 2009

World Wealth

AMERICASAMERICASAMERICASAMERICAS

EUEUEUEU

ASASASASIIIIAAAA20%20%20%20%

15%15%15%15%

36%36%36%36%

3.03.6

3.0

2.6

3.0

2004 200913.0

17.4

HNWI Population (mn) HNWI Wealth (US$ tr)



8.9

9.5

2004 2009

34%34%34%34%

7%7%7%7%

37%37%37%37%

5

GATEWAYGATEWAYGATEWAYGATEWAY1111

33%33%33%33%

0.30.4

2004 2009

2004 20092.2

3.0

2004 2009

1Gateway Region includes Middle East

Source: World Wealth Report 2007 and 2010 of Capgemini and Merrill Lynch. HNWI – High Net Worth Individual.

2004 2009


7.19.7

2004 2009

1.0

1.5

2004 2009

50%50%50%50%

Sovereign Wealth Funds

RegionRegionRegionRegional al al al ---- 20102010201020101111 Top 10 Largest Top 10 Largest Top 10 Largest Top 10 Largest ---- USUSUSUS $bn, 2010$bn, 2010$bn, 2010$bn, 20102222

738

733

436

395

333

220

203

193

65

62

United Arab Emirates

China

Saudi Arabia

Norway

Singapore

Russia

Kuwait

Hong Kong

Libya

Qatar

Asia, 41%Europe,

19%

Americas4%

Other,2%

6

Top 10 Largest Top 10 Largest Top 10 Largest Top 10 Largest ---- USUSUSUS $bn, 2007$bn, 2007$bn, 2007$bn, 20073333

0 500 1000


875

430

312

300

300

70

40

35

32

0 500 1000


Singapore

Norway

China

Saudi Arabia

Kuwait

Australia

Alaska

Russia

1Gateway Region includes MENA and Africa; Americas include North and Latin America. Source: PE Report of Preqin, 2011.2Source: Getmoney.com, January 2010.3Source: http://chenesseau.net/4.html.

Gateway, 34%

TURKEY: A Gateway Destination in the Gateway Region

GGGGDPDPDPDP

2000 2010

US$US$US$US$ 266266266266 bnbnbnbn US$ 729 bnUS$ 729 bnUS$ 729 bnUS$ 729 bn

FDI (NET INFLOWS)FDI (NET INFLOWS)FDI (NET INFLOWS)FDI (NET INFLOWS)

2000 2010

FOREIGNFOREIGNFOREIGNFOREIGN TRADE VOLUMETRADE VOLUMETRADE VOLUMETRADE VOLUME

2000 2010

7

M&A TRANSACTIONSM&A TRANSACTIONSM&A TRANSACTIONSM&A TRANSACTIONS

2002 2010

US$US$US$US$ 0.6 bn0.6 bn0.6 bn0.6 bn US$US$US$US$ 26.426.426.426.4 bnbnbnbn

US$ 0.90.90.90.9 bn US$ 7.07.07.07.0 bnUS$US$US$US$ 111111116666 bnbnbnbn

2000 2010

US$US$US$US$ 299299299299 bnbnbnbn

Source: IMF Database, World Bank Database; EMPEA Database, December 2008; Ernst & Young M&A Transactions Report 2010; Turkish Statistical

Institute Database, UNCTAD Global Investment Trends Monitor Report, January 17, 2010.

TURKEY: Developing Relations With the Middle East

FDI (NET INFLOWS) FDI (NET INFLOWS) FDI (NET INFLOWS) FDI (NET INFLOWS)

(US$ mn)(US$ mn)(US$ mn)(US$ mn)FOREIGNFOREIGNFOREIGNFOREIGN TRADE VOLUME TRADE VOLUME TRADE VOLUME TRADE VOLUME

(US$ bn)(US$ bn)(US$ bn)(US$ bn)

8

(US$ bn)(US$ bn)(US$ bn)(US$ bn)

Source: Turkish Statistical Institute Database. January 2011.

CAGR CAGR CAGR CAGR

74%74%74%74%

5

245

2002 2009

6.6

28.7

2002 2009

CAGR CAGR CAGR CAGR

23%23%23%23%

TURKEY: In The Flow of a Major Global Resource Basin

Gateway Region as a % of Total Global ResourcesGateway Region as a % of Total Global ResourcesGateway Region as a % of Total Global ResourcesGateway Region as a % of Total Global Resources 1111

ENERGY MININGAGRICULTURAL

GOODS

Gateway Region Oil Natural Gas Coal Gold Platinum Copper Phosphate Wheat Cotton

MENA 64.7% 45.8% 0.2% 1.1% NA 1.5% 47.2% 7.1% 3.5%

Sub-Saharan Africa 5.1% 3.5% 2.9% 21.1% 88.7% 7.4% 10.5% 1.0% 5.9%

Russia/FSU 10.0% 30.7% 26.9% 17.9% 8.7% 7.3% 1.3% 15.3% 7.3%

Total 79.8% 79.6% 30.9% 40.1% 97.5% 16.3% 59.0% 23.4% 16.7%

9

2Source: BP Energy Statistical Review, June 2009, USGS Commodity Statistics and Information, December 2008, Food and Agriculture

Organization of the United Nations, December 2008.

1 Source: radikal.com.tr , milliyet.com.tr, arsiv.ntvmsnbc.com, ilgazetesi.com.tr, alternaturk.org, zaman.com.tr.

Turkey as a major oil & gas transit countryTurkey as a major oil & gas transit countryTurkey as a major oil & gas transit countryTurkey as a major oil & gas transit country 2222

PER DAY OIL NATURAL GAS

Baku-Tbilisi-Ceyhan Pipeline ~ 2730 barrels

Iraq-Turkey Pipelines ~457 barrels

Baku-Tbilisi-Erzurum Pipeline 10-14 mn m3

Iran –Turkey Pipeline ~18 mn m3

Russia-Turkey Pipelines ~54mn m3

Turkey- Europe Pipelines ~43 mn m3

TURKEY & MIDDLE EAST: Creating Regional Champions

with M&A – Private Equity

M&A Volume (US$ bn)M&A Volume (US$ bn)M&A Volume (US$ bn)M&A Volume (US$ bn) PE Investment Volume (US$ bn)PE Investment Volume (US$ bn)PE Investment Volume (US$ bn)PE Investment Volume (US$ bn)

34.0

39.437.2

9.2

30.6

2.2

5.45.7

2.7

10

Source: EMPEA Database, 2010; Ernst & Young M&A Transactions Report 2010.

9.2

2006 2007 2008 2009 2010

0.9

2006 2007 2008 2009 2010

THANKTHANKTHANKTHANK YOU

[email protected]

TURKEY & MIDDLE EAST: A Fruitful Relationship

11

[email protected]

Disclosure Statement

PineBridge Investments is a group of international companies acquired by Pacific Century Group from American International Group, Inc. in March 2010.PineBridge companies provide investment advice and market asset management products and services to clients around the world.

PineBridge Investments is a service mark proprietary to PineBridge Investments IP Holding Company Limited. Services and products are provided by one ormore affiliates of PineBridge Investments. Certain middle and back office functions incidental to the services and products provided byPineBridge Investments and its affiliates may be outsourced to third parties.

Readership: This document is intended solely for the addressee(s). Its content may be legally privileged and/or confidential.

Opinions: Any opinions expressed in this document may be subject to change without notice. We are not soliciting or recommending any action based onthis material.

Risk Warning: Past performance is not indicative of future results. Our investment management services relate to a variety of investments, each of whichcan fluctuate in value. The value of portfolios we manage may fall as well as rise, and the investor may not get back the full amount originally invested. Theinvestment risks vary between different types of instruments. For example, for investments involving exposure to a currency other than that in which theportfolio is denominated, changes in the rate of exchange may cause the value of investments, and consequently the value of the portfolio, to go up or down.In the case of a higher volatility portfolio the loss on realization or cancellation may be very high (including total loss of investment), as the value of such aninvestment may fall suddenly and substantially.

In making an investment decision, prospective investors must rely on their own examination of the merits and risks involved.

Unless otherwise noted, all information contained herein is sourced from PineBridge Investments internal data.

12

Unless otherwise noted, all information contained herein is sourced from PineBridge Investments internal data.

The content included herein has been shared with various in-house departments within the member companies of PineBridge Investments, in the ordinarycourse of completion. All PineBridge Investments member companies comply with the confidentiality requirements of their respective jurisdictions.

Parts of this presentation may be based on information received from sources we consider reliable. We do not represent that all of this information isaccurate or complete, however, and it may not be relied upon as such.

PineBridge Investments Europe Limited is authorised and regulated by the Financial Services Authority ("FSA"). In the UK this communication is a financialpromotion solely intended for professional clients as defined in the FSA Handbook and has been approved by PineBridge Investments Europe Limited.

Approved by PineBridge Investments Ireland Limited. This entity is authorised and regulated by the Central Bank of Ireland.

In Australia, this document is intended for a limited number of wholesale clients as such term is defined in chapter 7 of the Corporations Act 2001 (CTH). Theentity receiving this document represents that if it is in Australia, it is a wholesale client and it will not distribute this document to any other person whetherin or outside of Australia.

In Hong Kong, in relation to collective investment schemes which are subject to the Advertising Guidelines Applicable to Collective Investment SchemesAuthorized under the Product Codes issued by the Securities and Futures Commission (SFC), the issuer of this document is PineBridge Investments HongKong Limited, licensed and regulated by the SFC. It has not been reviewed by the SFC.

PineBridge Investments Singapore Limited is licensed and regulated by the Monetary Authority of Singapore (the”MAS”). In Singapore, this material isintended for an institutional investor as defined in Section 4A of the Securities and Futures Act (Chapter289). This material is not reviewed or endorsed bythe MAS.

PineBridge Investments Middle East Limited is regulated by the Dubai Financial Services Authority. When being offered by PineBridge Investments MiddleEast Limited this document is intended for Professional Clients only and no other person should act upon it. The financial products and services to which thismaterial relates will only be made available to persons who meet the regulatory criteria to be treated as Professional Clients of PineBridge InvestmentsMiddle East Limited.

PineBridge Investments Web Address: www. pinebridge.com

Rev. 29/11/2010

taf pine bridge serkan elden speech

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