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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