turkish capital markets · 2011: forex regulation passed. 2012: new capital markets law passed. ise...

Turkish Capital MarketsJune 2020

23

2

Turkish Capital Markets Association

Investment Institutions

Structure of the Turkish Financial Markets

Turkish Capital Markets

Investor Profile

CONTENTS

15

45

3

68

STRUCTURE OF THE TURKISH CAPITAL MARKETS

CAPITAL MARKETS BACKGROUND

4

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.Turkey Wealth Fund established

2017: Auto-enrollment in the private pension system introduced.

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

CAPITAL MARKET INSTITUTIONS IN TURKEY

6

Rating Co.

Ind. Audit Co.

Settlement & Custody Bank (Takasbank)

Capital Markets Board

Banks Brokerage Firms

Inv. Trusts

Asset 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.

• European Investment Bank (EIB) acquired 10% share in 2015. Turkey Wealth

Fund acquired Nasdaq’s 7% stake in Borsa Istanbul in 2018, and EIB’s 10%

stake in 2019.

• 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.

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

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 for Borsa Istanbul Futures & Options, Debt Securities,

Equities, Money and Swap markets

o The national numbering agency of Turkey.

• Takasbank operates the Securities Lending & Borrowing Market and Takasbank

Money Market, and acts as CCP in those markets

• It offers clearing and central counter party services for Turkish Lira IRS (Interest

Rate Swap) and OIS (Overnight Index Swap) contracts in OTC markets

• It serves as a custodian to private pension system.

• 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

10

• 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) or

Electronic Warehouse Receipt Center (e-Warehouse).

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 217,801 (~$ 36,000) in 2020, 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

12

• 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

13

Market

Makers

Execution

Brokers

Introducing

Brokers

• execution of orders from their

own account by positioning their customers as counterparty

• minimum capital: TL 28.7 mn.

• execution of orders of in the name

of customers and/or their own account

• offering custody services


• reception of orders and

transfer them to other brokers


ASSET MANAGEMENT COMPANIES

14

Portfolio Management Companies

Real Estate/Venture Capital

Portfolio Management Companies

• May establish stock, bond,

balanced mutual funds

• Mn. capital required varies btw. TL 2.9 million and TL

14.4 million depending on AUM.

• May establish only real

estate or venture capitalinvestment funds

• Mn. capital required varies

btw. TL 1.4 million and TL 7.2 million depending on AUM.

TURKISH CAPITAL MARKETS ASSOCIATION

TCMA

16

• 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

MEMBERS

17

88 80 78 74 73

4344 44 44 44

5250 56

54 52

4848 49

49 49

2016 2017 2018 2019 2020/06

Investment Trusts Asset Management Firms Banks Brokerage Firms

221227

222218

231

AIMS

18

• 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

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.

ORGANISATION

20

Chairman(Board of Directors)

Secretary General

Assistant Secretary General

DisciplineCommittee

Board of Auditors

Research & Statistics

Information Technologies

Corporate Communications

TrainingCompliance & Surveillance

Legal Affairs

Human Resources,

Administrative & Financial Affairs


Membership Affairs


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.

PARTICIPATIONS

22

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

24

Source: Borsa Istanbul

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

0

25,000

50,000

75,000

100,000

125,000

150,000

01-1

7

02-1

7

03-1

7

05-1

7

06-1

7

08-1

7

09-1

7

11-1

7

12-1

7

01-1

8

03-1

8

04-1

8

06-1

8

07-1

8

09-1

8

10-1

8

11-1

8

01-1

9

02-1

9

04-1

9

05-1

9

07-1

9

08-1

9

10-1

9

11-1

9

Trading Volume BIST-100 bn. TLPoint TL

MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION TL)

25


555 614 880 795

1,109

2015 2016 2017 2018 2019

BREAKDOWN OF BORSA ISTANBUL MARKET CAPITALIZATION

26


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019

Technology

Financials

Services

Industrials

CONCENTRATION IN THE EQUITY MARKET (MCAP)

27


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019

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

No. of Equities

13,002

6,191

24,097

185

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

NYSENasdaq OMX

TokyoShanghai

Hong KongEuronext

London GroupShenzhen

TMXSaudi Arabia

BSE IndiaNSE IndiaDeutsche

SwissAustralia

South KoreaOMX Nordic

TaiwanBrazil

JohannesburgSpain

MoscowThailand

MexicoMalaysia

TehranPhilippinesOslo Bors

Tel AvivSantiago

Borsa IstanbulQatar

HoChiMinhWarsaw

Colombia

5,106

DOMESTIC MARKET CAPITALIZATION (2019, BILLION $)

28

Source: WFE

Rank: 31 (out of 71)

Total: $ 90,3 trillion

25%

0% 50% 100% 150%

Hong KongSaudi Arabia

JohannesburgSwiss

TaiwanTMX

TokyoNYSE

MalaysiaOMX Nordic

AustraliaEuronextThailandJamaica

South KoreaLondon Group

QatarPhilippinesBSE IndiaNSE India

BahrainTehran

SantiagoBarbados

BrazilOslo Bors

Tel AvivNasdaq OMX

MauritiusSpain

LuxembourgCasablancaHoChiMinh

New ZealandDeutsche

MoscowLima

ColombiaShanghai

MaltaCroatiaMexico

AmmanAthens

Borsa IstanbulPanama

ShenzhenWarsaw

KazakhstanMuscat

1,314%309%273%255%208%

MARKET CAPITALIZATION/GDP (2019)

29

Source: WFE, IMF

Rank: 45

349 336 336 343 344

6869

66 6264

15 13 9 9 4

2015 2016 2017 2018 2019

Real Estate/Venture Capital Investment Trusts/Funds ETF Other Equities Equities

430414 411 414 412

NUMBER OF SECURITIES IN THE EQUITY MARKET

30


Equities: BIST Main+BIST Star

Other Equities: BIST Emerging Companies, Watchlist,

Pre-Market Trading Platform,

5,0823,7083,4133,1403,036

379

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

BSE IndiaTokyo

TMXNasdaq OMX

SpainHong Kong

London GroupNYSE

South KoreaShenzhenAustralia

NSE IndiaShanghaiEuronext

OMX NordicTaiwan

MalaysiaWarsaw

TaipeiSingapore

ThailandIndonesiaDeutscheTel Aviv

Borsa IstanbulHoChiMinh

HanoiTehranBrazil

BangladeshBangladesh

ColomboSantiago

SwissPhilippines

NUMBER OF LISTED COMPANIES (2019)

31

Source: WFE

Rank: 25

EQUITY TRADING VOLUME OF BORSA ISTANBUL (BILLION TL)

32


1,026 1,014

1,468

1,9932,129

2015 2016 2017 2018 2019

350

0 2,000 4,000 6,000

Nasdaq OMXNYSE

BATS USShenzhenShanghai

TokyoBATS Chi-x Europe

London GroupHong Kong

South KoreaEuronext

TMXDeutscheNSE India

BrazilAustralia

TaiwanSwiss

OMX NordicSpain

ThailandBorsa IstanbulJohannesburg

TaipeiSaudi Arabia

MoscowSingaporeIndonesiaMalaysia

Oslo BorsBSE India

MexicoTel AvivTehran

HoChiMinh

39,68315,432

7,81511,28813,150

EQUITY TRADING VOLUME (2019, BILLION $)

33

Source: WFE


305%222%

189%

0% 50% 100% 150% 200%

ShenzhenNasdaq OMX

TaipeiBorsa Istanbul

ShanghaiSouth Korea

London GroupTokyoBrazil

TaiwanAustraliaThailand

NYSEDeutsche

TMXNSE India

SpainAthens

IranSwiss

OMX NordicHong KongBangladesh

Oslo BorsJohannesburg

HoChiMinhTel Aviv

EuronextHungaryMalaysiaWarsawMoscow

EgyptBuenos AiresNew Zealand

331%

TURNOVER RATIO (EQUITY TRADING VOLUME/MARKET CAPITALIZATION - 2019)

34

Source: WFE

Rank: 4

SECURITIES LENDING/BORROWING IN BORSA ISTANBUL (BILLION TL)

35

Source: Takasbank

5.6

7.4

13.0

14.2

22.0

2015 2016 2017 2018 2019

SHORT SELLING IN BORSA ISTANBUL

36


178 170 184 185 135

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

Short Selling Volume (bn. TL)

Share in Total Volume

MARGIN TRADING

37

Source: TCMA

1.5 1.5 2.1 1.8 2.8

9,585 9,390

10,67012,101 11,895

2015 2016 2017 2018 2019

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

FUTURES TRADING VOLUME OF BORSA ISTANBUL

38

Source: Borsa Istanbul, TurkDex

567 580 829 1,249 1,401

88100

139

232

389

2015 2016 2017 2018 2019

Futures Trading Volume (bn. TL)

No. of Contracts (million)

1,392,947

314,373244,897

241

0 5,000 10,000 15,000

Chicago Mercantile…ICE (Europe)

Saint PetersburgDeustche Boerse

ASXBM&F Bovespa

LME-LondonShanghai FE

Tokyo SEHong Kong

CFFEX- ChinaKoreaOsaka

NSE-IndiaTAIFEX

OMX NordicTaiwan Futures…

Asia-PasificMoscow

MCX-IndiaSpain

JohannesburgBSE India

Zhengzhou CEBorsa IstanbulMalasysia DE

Dubai Gold and…Mexica

ArgantinaWarsaw

98,39746,30926,91717,366

TRADING VOLUME IN FUTURES MARKETS (2019, BILLION $)

39

Source: WFE WFE Total: $ 2,229 trillion


NUMBER OF LISTED CORPORATE BONDS IN BORSA ISTANBUL

40

Source: WFE

464519

662611

511

2015 2016 2017 2018 2019

8,5616,6023,166

511

0 500 1,000 1,500

ShanghaiSouth Korea

London GroupDeutscheNSE IndiaShenzhen

MoscowBuenos Aires

TaipeiSwiss

PanamaTel Aviv

ColombiaHong Kong

Borsa IstanbulOMX Nordic

LimaBrazil

TunisiaKazakhstanCosta Rica

WarsawColombo

New ZealandHungaryMauritius

IranCasablanca

NigeriaTehran

HoChiMinhMuscat

LjubljanaMalaysia

Egypt

11,386

2,6201,540

NUMBER OF LISTED CORPORATE BONDS (2019)

41

Source: WFE

Rank: 15

INITIAL PUBLIC OFFERINGS

42


119 343 1,254 5,419 263

6

2

3

9

6

2015 2016 2017 2018 2019

IPO Volume (mn. TL) No. of IPOs

EQUITY FINANCING

43


0.1 0.31.3

5.4

0.3

2.0 1.6

3.8

9.6

6.1

2015 2016 2017 2018 2019

SPO + Rights Issue (bn. TL)

IPO (bn. TL)

6.3

2.1 2.0

5.1

15.0

CORPORATE DEBT SECURITIES ISSUANCE

44

Source: Borsa Istanbul *Excludes private placement

80 90 130 179 210

621

760

1,217

1,3851,330

2015 2016 2017 2018 2019

Issuance (bn. TL)

No. of Corporate Bonds Issued

INVESTMENT INSTITUTIONS

FIXED INCOME TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

46

Source: Borsa IstanbulExcluding Central Bank and Takasbank

942

1,1251,027

1,095 1,146

117

184

196

193194

2015 2016 2017 2018 2019

Brokerage Firms

Banks1,391

1,059

1,3081,223

1,289

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

47

Source: Borsa IstanbulExcluding Central Bank and Takasbank.

14,70013,546

6,177 5,512

21,688

1,6141,331

1,1771,138

5,659

2015 2016 2017 2018 2019

Brokerage Firms Banks

16,315

14,877

7,3546,650

27,346

EQUITY TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

48


2,052 2,027

2,773

3,6263,906

163

361

354

2015 2016 2017 2018 2019

Banks Brokerage Firms 3,987

4,260

2,936

2,0272,052

FUTURES TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

49

Source: Borsa Istanbul Excluding Central Bank

1,131 1,154

1,628

2,424

2,684

5 4

6

31

74

2015 2016 2017 2018 2019

Banks

Brokerage Firms

2,803

1,135 1,160

1,658

2,499

FOREX TRADING VOLUME (BILLION TL)

50

Source: TCMA

9,546

12,245

4,667 4,494 4,121

7,459

9,604

3,9125,211

3,610

2015 2016 2017 2018 2019

Liquidity Provider

Client

7,731

9,7058,578

21,850

17,005

CONCENTRATION IN TRADING VOLUMES (2019)

51

Source: Borsa Istanbul, TCMA

64%68% 65%

79%

21%

24%

21%

17%15%

7%14%

3%

Equity Fixed Income Futures Forex (Customer)

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

TOP 10 MEMBERS IN THE MARKETS (2019)

52


Equity Market Futures Market

1 YAPI KREDİ YATIRIM 12% 1 YAPI KREDI YATIRIM 16%

2 MERRILL LYNCH 8% 2 IS YATIRIM 11%

3 İŞ YATIRIM 8% 3 GARANTI YATIRIM 8%

4 AK YATIRIM 7% 4 QNB FINANS YATIRIM 6%

5 GARANTİ YATIRIM 7% 5 TEB YATIRIM 5%

6 GEDİK YATIRIM 5% 6 DENIZ YATIRIM 4%

7 QNB FİNANS YATIRIM 4% 7 AK YATIRIM 4%

8 YATIRIM FİNANSMAN 4% 8 GEDIK YATIRIM 3%

9 A1 CAPITAL YATIRIM 4% 9 TACIRLER YATIRIM 3%

10 DENİZ YATIRIM 4% 10 GCM YATIRIM 3%

Total (billion TL) 4,260 Total (billion TL) 2,803

Fixed Income Market Forex Market (Customer)

1 HSBC BANK 12% 1 AK YATIRIM 18%

2 TÜRKİYE GARANTİ BANKASI 9% 2 İŞ YATIRIM 13%

3 TÜRKİYE İŞ BANKASI 9% 3 INTEGRAL YATIRIM 9%

4 TÜRK EKONOMİ BANKASI 9% 4 GCM 9%

5 YAPI VE KREDİ BANKASI 8% 5 MEKSA YATIRIM 8%

6 AKBANK T. 5% 6 DENİZ YATIRIM 6%

7 ING BANK 5% 7 İNFO YATIRIM 4%

8 JPMORGAN CHASE BANK NATIONAL ASSOCIATION MERKEZİ COLOMBUS OHIO İSTANBUL-TÜRKİYE ŞB.4% 8 QNB FİNANS YATIRIM 4%

9 CITIBANK 4% 9 A1 CAPITAL YATIRIM 4%

10 AK YATIRIM 4% 10 GEDİK YATIRIM 4%

Total (trillion TL) 1,341 Total (billion TL) 4,121

NUMBER OF FINALIZED CORPORATE FINANCE DEALS (BROKERAGE FIRMS ONLY)

53

Source: TCMA

608702

1,020

1,2161,14534

90

96

97

113

87

72

80

8875

6

2

4

173

11

15

22

23

19

2015 2016 2017 2018 2019

Other Financing

Privatization

M&A

IPO&SPO-Equities

Corporate Actions

Other Consultancy

Bond Issuance

1,228

883

746

1,457 1,362

INSTITUTIONAL INVESTMENTS (BILLION TL)

54


37 4459 57

12748 58

80 93

128

0.3

0.3

0.30.4

0.3

21

24

2718

28

1.3

1.1

2.6 1.5

3.0

2015 2016 2017 2018 2019

Venture Capital Inv. Trusts REITs

Investment Trusts Pension Funds

Mutual Funds

169

287

108

128

170

ASSET MANAGEMENT BY BROKERAGE FIRMS

55

Source: TCMA

1.3 1.3 1.9 2.1 3.8

2,649

3,674

4,0854,331

4,931

2015 2016 2017 2018 2019

Assets Under Management (bn. TL)

No. of Investors

ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES

56

Source: CMB, TCMA

101 122 158 173 284

2,688

3,082

3,344

3,475

3,388

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2015 2016 2017 2018 2019

Assets Under Management (bn. TL)

No. of Investors

CONCENTRATION IN PORTFOLIO MANAGEMENT FIRMS (2019)

57

Source: TCMA

65%

83% 87%

98%

20%

14% 9%

2%

14%3% 5%

Mutual Funds Pension Funds Discretionary Asset Man. Investment Trusts

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

58

Source: TCMA

TOP 5 MEMBERS IN PORTFOLIO MANAGEMENT ACTIVITIES (2019)

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 (billion TL) 127.4 Total (billion TL) 127.6

Discretionary Asset Management Investment Trusts

1 ZİRAAT PORTFÖY 29% 1 İŞ PORTFÖY 43%

2 AK PORTFÖY 21% 2 METRO PORTFÖY 34%

3 İŞ PORTFÖY 16% 3 HEDEF PORTFÖY 10%

4 AZİMUT PORTFÖY 13% 4 GARANTİ PORTFÖY 6%

5 İSTANBUL PORTFÖY 7% 5 OYAK PORTFÖY 5%Total (billion TL) 28.7 Total (million TL) 644

BROKERAGE FIRMS’ BRANCH NETWORK

59

Source: TCMA

6,712 9,261 9,361 9,387 9,332

323

310291 289 277

76

59 40 46 64

2015 2016 2017 2018 2019

Bank Branches Branches Rep. Offices

9,7479,6929,630

7,111

9,722

BROKERAGE FIRMS’ EMPLOYEES

60

Source: TCMA

3,845 3,735

2,811 2,841 2,844

2,787 2,743

1,940 2,075 2,121

2015 2016 2017 2018 2019

Male Employees Female Employees

4,9654,9164,751

6,4786,632

ASSET MANAGEMENT COMPANIES’ EMPLOYEES

61

Source: TCMA

432 445 475 498 474

266 275260

279264

2015 2016 2017 2018 2019

Male Employees Female Employees

747777

735720

698

BALANCE SHEET OF BROKERAGE FIRMS (BILLION TL)

62

Source: TCMA

14.2

20.1

21.920.4

25.1

15.3

21.2

23.121.9

27.2

4.0 4.3 4.76.2

7.6

2015 2016 2017 2018 2019

Current Assets Total Assets Shareholders' Equity

INCOME STATEMENT OF BROKERAGE FIRMS (MILLION TL)

63

Source: TCMA

2,0012,175

2,510

3,557

4,264

301 332

774

1,422

1,842

433 483

799

1,343

1,728

2015 2016 2017 2018 2019

Total Revenues Operating Profit Net Profit

BREAKDOWN OF BROKERAGE FIRMS’ REVENUES (MILLION TL)

64

Source: TCMA

1,332 1,511 1,435

1,928 1,986

89106 302

343900

170164

240

323

344

360358

485

904

967

2015 2016 2017 2018 2019

Brokerage Commissions Proprietary Trading Profits Corporate Finance

Asset Management Others

4,264

2,001

3,557

2,510

2,175

BALANCE SHEET OF ASSET MANAGEMENT COMPANIES (MILLION TL)

65

Source: TCMA

472

571

698

863

1,034

507

609

740

918

1,139

456

552

664

809

982

2015 2016 2017 2018 2019

Current Assets Total Assets Shareholders' Equity

INCOME STATEMENT OF ASSET MANAGEMENT COMPANIES (MILLION TL)

66

Source: TCMA

296

347

439

524

666

88105

165188

290

91111

165

232

336

2015 2016 2017 2018 2019

Total Revenues Operating Profit Net Profit

BREAKDOWN OF ASSET MANAGEMENT COMPANIES’ REVENUES (MILLION TL)

67

Source: TCMA

177211

282358

48891

99

12199

108

4

4

4

5

4

22

20

24

32

51

2015 2016 2017 2018 2019

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

499

434

337

294

656

INVESTOR PROFILE

BREAKDOWN OF TOTAL SAVINGS (BILLION TL)

69

Source: BRSA, CRA, TCMA estimates

1,2451,453

1,7112,036

2,567

574

627

734

830

1,145

226

247

355

315

476

2015 2016 2017 2018 2019

Equities

Fixed Income

Deposits

2,045

2,327

2,800

4,188

3,181

SAVINGS OF DOMESTIC INVESTORS

70

Source: BRSA, CRA, TCMA estimates

Total Domestic Inv. Savings as of

2019: TL 3.6 trillion

67% 69% 68% 69% 66%

28% 27% 26% 27%29%

5% 5% 5% 4% 5%

2015 2016 2017 2018 2019

Equities

Fixed Income

Deposits

SAVINGS OF FOREIGN INVESTORS

71

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

2019: TL 591 bn

26% 27% 27%33% 32%

30% 28% 25%

22%17%

44% 45% 48% 45%52%

2015 2016 2017 2018 2019

Equities

Fixed Income

Deposits

NUMBER OF EQUITY INVESTORS

72

(thou.) 2015 2016 2017 2018 2019

Domestic Investors 1,049.2 1,031.3 1,081.3 1,169.2 1,193.7

1,043.5 1,025.9 1,076.1 1,163.3 1,188.1

5.0 4.7 4.6 5.2 4.9

0.7 0.7 0.7 0.8 0.7

Foreign Investors 9.8 9.5 9.6 9.7 9.7

6.2 6.2 6.2 6.5 6.6

1.5 1.4 1.5 1.5 1.4

2.1 1.9 1.9 1.8 1.7

Total 1,059.0 1,040.8 1,090.9 1,178.9 1,203.4

Dom. Individuals

Dom. Corporations

Dom. Institutionals

Number of Equity Investors

Source: CRA

For. Individuals

For. Corporations

For. Institutionals

BREAKDOWN OF MARKET CAPITALIZATION (BILLION TL)

73

Source: CRA, Borsa Istanbul

85 89 123 111186

141 157

232204

290

329368

525

479

633

2015 2016 2017 2018 2019

Privately Held

Foreigners' Portfolio

Domestics' Portfolio

1,109

555614

880

795

SHARE OF FOREIGN INVESTORS

74

Source: CRA, Borsa Istanbul

0%

4%

8%

12%

16%

20%

24%

28%

32%

36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2015 2016 2017 2018 2019

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

Vol.MCap

EQUITY OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

75

Source: CRATotal equity portfolio as of Dec. 2019: TL 476 bn

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019

For. Other

For. Corporation

For. Individual

Dom. Other

Dom. Corporation

Dom. Individual

EQUITY TRADING VOLUME BY INVESTOR CATEGORIES*

76

Source: TCMA *Brokerage firms and investment banks only

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019

For. Institutional

For. Corporation

For. Individual

Dom.

Institutional

Dom. Corporation

Dom. Individual

NUMBER OF CORPORATE BOND INVESTORS

77

2015 2016 2017 2018 2019

Domestic Investors 135,690 96,771 81,865 77,671 65,998

131,798 93,217 78,954 75,361 64,010

3,197 2,886 2,292 1,660 1,344

695 668 619 650 644

Foreign Investors 1,066 705 622 662 453

1,034 677 594 641 431

24 25 24 18 19

8 3 4 3 3

Total 136,756 97,476 82,487 78,333 66,451

Source: CRA

Dom. Institutionals

For. Individuals

For. Corporations

For. Institutionals

Number of Corporate Bond Investors

Dom. Individuals

Dom. Corporations

CORPORATE BOND OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

78

Source: CRA Total corporate bond portfolio as of Dec. 2019: TL 93 bn.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019

For. Other

For. Corporation

For. Individual

Dom. Other

Dom. Corporation

Dom. Individual

MUTUAL FUND INVESTORS

79

Source: CRA

38.9 45.1 56.4 52.8 122.7

2.92.9

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

140.0

2015 2016 2017 2018 2019

Portfolio Size (bn. TL)

Number of Investors (mn.)

48.0 60.8

77.8 87.9

127.6

1.8

4.6

8.2

6.0

6.6

PP 6.1

AE 3.3

PP 6.1

AE 4.8

PP 6.1

AE 5.4

-

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

140.0

160.0

2015 2016 2017 2018 2019

Auro Enrolment - Total Portfolio Size (bn. TL)

Private Pension - Portfolio Size (bn. TL)

UniqueNumber of Investors (mn.)

PENSION FUND INVESTORS

80

Source: PMC

PP: Private pension schemesAE: Auto-enrolment

Portfolio size includes government contributions.

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%

2015 2016 2017 2018 2019

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%

2015 2016 2017 2018 2019

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

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