October 2018 - TSPB
Transcript of October 2018 - TSPB
Turkish Capital Markets October 2018
24
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Turkish Capital Markets Association
Investment Institutions
Structure of the Turkish Financial Markets
Turkish Capital Markets
Investor Profile
CONTENTS
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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. Türkiye Wealth Fund established 2017: Auto-enrollment in the private pension system introduced.
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.
BORSA ISTANBUL
9
• The main markets and the traded securities on Borsa Istanbul are:
o Equity Market: Shares, rights coupons, ETFs, warrants, certificates.
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,
o The national numbering agency of Turkey.
• It operates a money market.
• Takasbank operates the Securities Lending & Borrowing Market and 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 143,604 (~$ 40,000) in 2018, 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 26 million.
• execution of orders of in the name of customers and/or their own account
• offering custody services • minimum capital: TL 10 million.
• reception of orders and transfer them to other brokers
• minimum capital: TL 2 million.
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 million and 10 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
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• 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 224 members as of October 2018; 78 brokerage firms, 44 banks, 53 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 53
46 47 4848 49
2014 2015 2016 2017 2018/09
Investment Trusts Asset Management Firms Banks Brokerage Firms
224222231
226232
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
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• 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
• one seat at the board of directors, out of 10 members
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
0
20,000
40,000
60,000
80,000
100,000
120,00001
-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
Trading Volume BIST-100 (TL)
Point Mn. TL
MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION TL)
26
Source: Borsa Istanbul
627 555 614 880801
2014 2015 2016 2017 2018/09
BREAKDOWN OF BORSA ISTANBUL MARKET CAPITALIZATION
27
Source: Borsa Istanbul
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017
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%
2013 2014 2015 2016 2017
1-10 11-25 26-50 51-100 100+
No. of Equities
10,0396,2235,090
22,081
228
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000
NYSENasdaq OMX
TokyoShanghai
London GroupEuronext
Hong KongShenzhen
TMXNSE IndiaBSE IndiaDeutsche
South KoreaSwiss
OMX NordicAustralia
JSETaiwan
BrazilSpain
SingaporeMoscowThailand
IndonesiaMalaysia
Saudi ArabiaMexico
SantiagoPhilippinesOslo Bors
Tel AvivBorsa Istanbul
WarsawWiener
Irish
DOMESTIC MARKET CAPITALIZATION (2017, 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: 32
1,302%358%257%248%
27%
0% 40% 80% 120% 160% 200%
Hong KongJSE
SingaporeSwiss
TaiwanMalaysia
TMXTokyo
ThailandOMX Nordic
South KoreaNYSE
SantiagoAustralia
LuxembourgEuronext
London GroupNSE IndiaBSE India
PhilippinesMauritius
QatarOslo Bors
SpainSaudi Arabia
Tel AvivBahrain
DeutscheCasablancaHoChiMinh
Nasdaq OMXIndonesia
LimaNew Zealand
BrazilIrish
MaltaShanghai
MoscowColombiaWarsawWienerMexico
AmmanAbu DhabiShenzhen
MuscatKazakhstan
DubaiBorsa Istanbul
MARKET CAPITALIZATION/GDP (2017)
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
311 301 289 289 296
65 68 69 63 58
24 22 18 18 18
37 39 38 41 43
2014 2015 2016 2017 2018/09
Real Estate/Venture Capital Investment Trusts/FundsETF+Inv. TrustsOther EquitiesEquities
437 430414 411 415
3,8783,6043,3283,136
375
0 500 1,000 1,500 2,000 2,500 3,000
BSE IndiaTokyo
TMXSpain
Nasdaq OMXLondon Group
NYSEAustralia
South KoreaHong KongShenzhenNSE IndiaShanghaiEuronext
OMX NordicTaiwan
MalaysiaSingapore
TaipeiThailand
IndonesiaWiener
DeutscheTel Aviv
Borsa IstanbulJSE
HoChiMinhBrazil
TehranColombo
NUMBER OF LISTED COMPANIES (2017)
32
Source: WFE
Rank: 25
Excluding ETFs and investment trusts
EQUITY TRADING VOLUME OF BORSA ISTANBUL (BILLION TL)
33
Source: Borsa Istanbul
8731,023 1,014
1,468 1,527
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2014 2015 2016 2017 2018/09
395
0 2,000 4,000 6,000 8,000 10,000
Nasdaq OMXNYSE
BATS USShenzhenShanghai
BATS Chi-x…Tokyo
London GroupEuronext
Hong KongSouth Korea
DeutscheTMX
SwissNSE IndiaAustralia
OMX NordicTaiwan
SpainBrazil
JSEBorsa Istanbul
ThailandMoscow
Taipei
12,302
33,40716,140
EQUITY TRADING VOLUME (2017, 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
333%253%227%
0% 40% 80% 120% 160% 200%
Nasdaq OMXShenzhen
TaipeiBorsa Istanbul
ShanghaiSouth Korea
London GroupTokyoSpain
OMX NordicNYSEBrazil
DeutscheEuronextAustralia
SwissThailand
TMXSaudi Arabia
Hong KongMoscow
Oslo BorsNSE India
HoChiMinhIrish
WarsawHungary
EgyptJSE
New Zealand
174%
TURNOVER RATIO (EQUITY TRADING VOLUME/MARKET CAPITALIZATION - 2017)
35
Source: WFE
Rank: 4
SECURITIES LENDING/BORROWING IN BORSA ISTANBUL (MILLION TL)
36
Source: Takasbank
6,296
5,565
7,423
12,97010,187
2014 2015 2016 2017 2018/09
SHORT SELLING IN BORSA ISTANBUL
37
Source: Borsa Istanbul
138 178 170 184 156
16%17%
17%
13%
10%
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 2018/09
Short Selling Volume (bn. TL)
Share in Total Volume
MARGIN TRADING
38
Source: TCMA
1,148 1,507 1,465 2,122 2,199
9,914 9,914 9,585
10,67011,518
2014 2015 2016 2017 2018/06
Outstanding Loan Size (mn. TL) No. of Contracts
FUTURES TRADING VOLUME OF BORSA ISTANBUL
39
Source: Borsa Istanbul, TurkDex
435 567 580 829 985
59
88
100
139
174
2014 2015 2016 2017 2018/09
Futures Trading Volume (bn. TL)
No. of Contracts (million)
1,103,634413,14374,612
225
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000
Chicago Mercantile…ICE (Europe)
BM&FBOVESPADeustche Boerse
ASX SFE DerivativesMontreal
LME-LondonOsakaKorea
ICE (US)Dalian CE-China
Hong KongCFFEX- China
NSE-IndiaZhengzhou CE
EuronextTaiwan Futures…
Nasdaq OMXMoscow
MCX-IndiaSpain
JSEBSE India
Malasysia DEBorsa Istanbul
64,120
TRADING VOLUME IN FUTURES MARKETS (2017, BILLION $)
40
Source: WFE
Rank: 25
NUMBER OF LISTED CORPORATE BONDS IN BORSA ISTANBUL
41
Source: WFE
436 464519
662739
2014 2015 2016 2017 2018/06
6,7026,4695,690
662
0 1,000 2,000 3,000 4,000 5,000
South KoreaBSE India
London GroupIrish
OMX NordicEuronext
NSE IndiaShanghai
SpainWiener
Oslo BorsJSE
Buenos AiresMoscow
TaipeiHong Kong
SwissTel Aviv
Borsa IstanbulColombiaShenzhen
WarsawLima
BrazilKazakhstan
7,696
5,3215,026
NUMBER OF LISTED CORPORATE BONDS (2017)
42
Source: WFE
Rank: 19
INITIAL PUBLIC OFFERINGS
43
Source: Borsa Istanbul
714 119 343 1,254 5,419
13
6
2
3
9
2014 2015 2016 2017 2018/09
IPO Volume (mn. TL) No. of IPOs
EQUITY FINANCING
44
Source: Borsa Istanbul
714 119 343 1,254
5,419
1
2,6601,966
1,645
3,809
8,279
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2014 2015 2016 2017 2018/09
Rights IssueIPO
3,556 3,331
2,148
5,063
13,698
CORPORATE DEBT SECURITIES ISSUANCE
45
Source: Borsa Istanbul
66 80 90 130 129
517
621
760
1,217
1,056
2014 2015 2016 2017 2018/09
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
942
1,1251,027
849
117
117
184
196
154
2014 2015 2016 2017 2018/09
Brokerage Firms
Banks1,257
1,059
1,308
1,223
1,003
REPO-REVERSE REPO TRADING VOLUME OF INTERMEDIARIES (BILLION TL)
48
Source: Borsa Istanbul Excluding Central Bank and Takasbank.
13,22914,700
13,546
6,1774,112
1,397
1,614
1,331
1,177
284
2014 2015 2016 2017 2018/09
Brokerage Firms Banks
14,626
16,315
14,877
7,354
4,948
EQUITY TRADING VOLUME OF INTERMEDIARIES (BILLION TL)
49
Source: Borsa Istanbul
1,7462,045 2,027
2,773 2,767
163 286
2014 2015 2016 2017 2018/09
Banks
Brokerage Firms 2,9363,053
FUTURES TRADING VOLUME OF INTERMEDIARIES (BILLION TL)
50
Source: Borsa Istanbul, TurkDex
8651,131 1,154
1,6281,914
5
4 6
31
56
2014 2015 2016 2017 2018/09
Banks
Brokerage Firms
988659886598865988659886598865988659886598865988659886598865
869
1,135 1,160
1,658
1,970
FOREX TRADING VOLUME (BILLION TL)
51
Source: TCMA
4,353
9,54612,245
4,6672,152
3,340
7,459
9,604
3,912
1,769
2014 2015 2016 2017 2018/06
Liquidity Provider
Client
7,693
3,921
8,578
21,850
17,005
CONCENTRATION IN TRADING VOLUMES (2018/09)
52
Source: Borsa Istanbul, TCMA Note: Forex trading volume data as of 2018/06 period
62% 67% 72% 77%
24%22% 16%
18%
14% 11% 11%5%
Equity Fixed Income Futures Forex
51+ 21-50 11-20 1-10No. of Intermediaries
TOP 10 MEMBERS IN THE MARKETS (2018/09)
53
Source: Borsa Istanbul, TCMA Note: Forex trading volume data as of 2018/06 period
Equity Market Futures Market
1 YAPI KREDİ YATIRIM MENKUL DEĞERLER A.Ş. 10% 1 YAPI KREDI YATIRIM MENKUL DEGERLER A.S. 15%2 MERRILL LYNCH YATIRIM BANK A.Ş. 9% 2 IS YATIRIM MENKUL DEGERLER A.S. 13%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. 9%5 AK YATIRIM MENKUL DEĞERLER A.Ş. 6% 5 QNB FINANS YATIRIM MENKUL DEGERLER A.S. 7%6 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 5% 6 AK YATIRIM MENKUL DEGERLER A.S. 6%7 A1 CAPITAL 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 TEB YATIRIM MENKUL DEĞERLER A.Ş. 4% 9 A1 CAPITAL MENKUL DEGERLER A.S. 3%10 DENİZ YATIRIM MENKUL KIYMETLER A.Ş. 4% 10 TACIRLER YATIRIM MENKUL DEGERLER A.S. 3%
Total (bn. TL) 3,053 Total (bn. TL) 1,970
Fixed Income Market Forex Market
1 AKBANK A.S. 16% 1 AK YATIRIM MENKUL DEĞERLER A.Ş. 17%2 T. GARANTI BANKASI A.S. 12% 2 GCM MENKUL KIYMETLER A.Ş. 14%3 HSBC BANK A.S. 7% 3 İŞ YATIRIM MENKUL DEĞERLER A.Ş. 12%4 T. ISBANKASI A.S. 6% 4 MEKSA YATIRIM MENKUL DEĞERLER A.Ş. 8%5 TURK EKONOMI BANKASI A.S. 6% 5 GEDİK YATIRIM MENKUL DEĞERLER A.Ş. 7%6 YAPI KREDI BANKASI A.S. 5% 6 IŞIK MENKUL DEĞERLER A.Ş. 7%7 JP MORGAN CHASEBANK NAT.ASS.MRK.COL.O.IST.TU 4% 7 DENİZ YATIRIM MENKUL KIYMETLER A.Ş. 5%8 DEUTSCHE BANK A.S. 4% 8 İNTEGRAL YATIRIM MENKUL DEĞERLER A.Ş. 4%9 AK YATIRIM MENKUL DEGERLER A.S. 4% 9 QNB FİNANS YATIRIM MENKUL DEĞERLER A.Ş. 3%10 CITIBANK A.S. 4% 10 ŞEKER YATIRIM MENKUL DEĞERLER A.Ş. 3%
Total (bn. TL) 1,003 Total (bn. TL) 3,921
NUMBER OF FINALIZED CORPORATE FINANCE DEALS (BROKERAGE FIRMS ONLY)
54
Source: TCMA
465608
702
1,020
658
63
34
90
96
54
83
87
72
80
50
14
6
2
4
1411
15
22
11
2014 2015 2016 2017 2018/06
Other Financing
Privatization
M&A
IPO&SPO-Equities
Corporate Actions
Other Consultancy
Bond Issuance
883
746
644
1,228
793
INSTITUTIONAL INVESTMENTS (BILLION TL)
55
Source: Borsa Istanbul, TCMA
33 37 4459 64
3848
58
8084
0.3
0.3
0.3
0.40.3
22
21
24
2723
1.5
1.3
1.1
2.6 1.6
2014 2015 2016 2017 2018/06
Venture Capital Inv. Trusts REITs
Investment Trusts Pension Funds
Mutual Funds
169
94
108
128
173
ASSET MANAGEMENT BY BROKERAGE FIRMS
56
Source: TCMA
5,375 1,267 1,341 1,904 2,683
2,9232,649
3,696
4,1023,907
2014 2015 2016 2017 2018/06
Assets Under Management (mn. TL)
No. of Investors
ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES
57
Source: CMB, TCMA
81,848 100,995 121,666 158,127 167,785
2,277
2,688
3,082
3,344
3,658
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2014 2015 2016 2017 2018/06
Assets Under Management (mn. TL)
No. of Investors
BROKERAGE FIRMS’ BRANCH NETWORK
58
Source: TCMA
7,071 5,763 8,297 8,392 8,402
150
323
310 291 291
71
67
76 59 41
2014 2015 2016 2017 2018/06
Bank Branches Branches Rep. Offices
8,7368,666
6,162
7,288
8,723
BROKERAGE FIRMS’ EMPLOYEES
59
Source: TCMA
5,657
6,632 6,478
4,751 4,818
2014 2015 2016 2017 2018/06
ASSET MANAGEMENT COMPANIES’ EMPLOYEES
60
Source: TCMA
698720 735
767
2015 2016 2017 2018/06
BANKS’ EMPLOYEES
61
Source: BRSA
216,912 217,504 210,886 208,280 208,878
2014 2015 2016 2017 2018/06
BALANCE SHEET OF BROKERAGE FIRMS (BILLION TL)
62
Source: TCMA
14.1 14.2
20.121.9
23.0
15.1 15.3
21.223.1
24.3
3.7 4.0 4.3 4.7 5.1
2014 2015 2016 2017 2018/06
Current Assets Total Assets Shareholders' Equity
INCOME STATEMENT OF BROKERAGE FIRMS (MILLION TL)
63
Source: TCMA
1,587
2,0012,175
2,510
1,604
281 301 332
774 694
372 433 483
799695
2014 2015 2016 2017 2018/06
Total Revenues Operating Profit Net Profit
BREAKDOWN OF BROKERAGE FIRMS’ REVENUES (MILLION TL)
64
Source: TCMA
1,0171,332
1,511 1,435
856
78
89
106 302
157
136
170164
240
205
308
360358
485
356
2014 2015 2016 2017 2018/06
Brokerage Commissions Proprietary Trading Profits Corporate FinanceAsset Management Others
1,587
2,001
1,604
2,510
2,175
BALANCE SHEET OF ASSET MANAGEMENT COMPANIES (MILLION TL)
65
Source: TCMA
472
571
698 681
507
609
740 743
456
552
664 671
2015 2016 2017 2018/06
Current Assets Total Assets Shareholders' Equity
INCOME STATEMENT OF ASSET MANAGEMENT COMPANIES (MILLION TL)
66
Source: TCMA
296
347
439
249
88105
165
9191111
165
106
2015 2016 2017 2018/06
Total Revenues
Operating Profit
Net Profit
BREAKDOWN OF ASSET MANAGEMENT COMPANIES’ REVENUES (MILLION TL)
67
Source: TCMA
177211
282
182
91
99
121
49
4
4
4
2
22
20
24
13
0
50
100
150
200
250
300
350
400
450
500
2015 2016 2017 2018/06Eksen Başlığı
Discretionary Asset Mgmt. Fund SalesFinancial Advisory Investment Trust Mgmt.Pension Fund Mgmt. Mutual Fund Mgmt.
INVESTOR PROFILE
BREAKDOWN OF TOTAL SAVINGS (BILLION TL)
69
Source: BRSA, CRA, TCMA estimates
1,0531,245
1,4531,711 1,899
555
574
627
734
754
249
226
247
355315
2014 2015 2016 2017 2018/06
Equities
Fixed Income
Deposits2,045
2,327
2,800
1,856
2,968
SAVINGS OF DOMESTIC INVESTORS
70
Source: BRSA, CRA, TCMA estimates Total Domestic Inv. Savings as of
2018/06: TL 2.5 trillion
66% 67% 69% 68% 70%
28% 28% 27% 26% 26%
6% 5% 5% 5% 5%
2014 2015 2016 2017 2018/06
Equities
Fixed Income
Deposits
SAVINGS OF FOREIGN INVESTORS
71
Source: BRSA, CRA, TCMA estimates Total Foreign Investors’ Savings as of
2018/06: TL 465 bn
18%26% 27% 27%
34%
36%30% 28% 25%
23%
46% 44% 45% 48%42%
2014 2015 2016 2017 2018/06
Equities
Fixed Income
Deposits
NUMBER OF EQUITY INVESTORS
72
(thou.) 2014 2015 2016 2017 2018/09Domestic Investors 1,065.5 1,049.2 1,031.3 1,081.3 1,163.8
1,059.6 1,043.5 1,025.9 1,076.1 1,157.95.2 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 9.66.2 6.2 6.2 6.2 6.41.4 1.5 1.4 1.5 1.42.3 2.1 1.9 1.9 1.7
Total 1,075.4 1,059.0 1,040.8 1,090.9 1,173.4
Dom. IndividualsDom. CorporationsDom. Institutionals
Number of Equity Investors
Source: CRA
For. IndividualsFor. CorporationsFor. Institutionals
BREAKDOWN OF MARKET CAPITALIZATION (BILLION TL)
73
Source: CRA, Borsa Istanbul
90 85 89 123 121
159 141 157
232 199
378329
368
525481
2014 2015 2016 2017 2018/09
Privately Held Foreigners' Portfolio Domestics' Portfolio
627 555614
880
801
SHARE OF FOREIGN INVESTORS
74
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 2018/09
Share in Free Float Mcap (left) Share in Trading Volume (right)
Vol.MCap
EQUITY OWNERSHIP ACCORDING TO INVESTOR CATEGORIES
75
Source: CRA Total equity portfolio as of 2018/09: TL 320 bn
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015 2016 2017 2018/09
For. Other
For. Corporation
For. Individual
Dom. Other
Dom. Corporation
Dom. Individual
BREAKDOWN OF EQUITY TRADING VOLUME BY INVESTOR CATEGORIES *
76
Source: TCMA *Brokerage firms only
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015 2016 2017 2018/06
For. Institutional
For. Corporation
For. Individual
Dom. Institutional
Dom. Corporation
Dom. Individual
NUMBER OF CORPORATE BOND INVESTORS
77
2014 2015 2016 2017 2018/09Domestic Investors 136,441 135,690 96,771 81,865 80,824
132,132 131,798 93,217 78,954 78,6283,601 3,197 2,886 2,292 1,555
708 695 668 619 641Foreign Investors 1,384 1,066 705 622 678
1,330 1,034 677 594 65536 24 25 24 2018 8 3 4 3
Total 137,825 136,756 97,476 82,487 81,502
Dom. Corporations
Source: CRA
Dom. Institutionals
For. IndividualsFor. CorporationsFor. Institutionals
Number of Corporate Bond Investors
Dom. Individuals
CORPORATE BOND OWNERSHIP ACCORDING TO INVESTOR CATEGORIES
78
Source: CRA Total corporate bond portfolio as of 2018/09: TL 75,8 bn.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015 2016 2017 2018/09
For. Other
For. Corporation
For. Individual
Dom. Other
Dom. Corporation
Dom. Individual
MUTUAL FUND INVESTORS
79
Source: CRA
36.2 38.9 45.1 56.4 54.1
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 2018/09
Portfolio Size (bn. TL)
Number of Investors (mn.)
PENSION FUND INVESTORS
80
Source: PMC PP: Private pension schemes
AE: Auto-enrolment Portfolio size includes government contributions.
37.6 48.0
60.8
77.8 86.9
3.5
7.4
5.1
6.0 6.6
10.3
PP 6.9AE 4.9
-
2.0
4.0
6.0
8.0
10.0
12.0
14.0
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
2014 2015 2016 2017 2018/09
Total Portfolio Size (bn. TL)
Portfolio Size (bn. TL)
Number of Investors (mn.)
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%
2014 2015 2016 2017 2018/06
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%
2014 2015 2016 2017 2018/06
For. Institutional
For. Corporation
For. Individual
Dom. Institutional
Dom. Corporation
Dom. Individual
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