turkish capital markets

Turkish Capital MarketsSeptember 2021

23

2

Turkish Capital Markets Association

Investment Institutions

Structure of the Turkish Financial Markets

Turkish Capital Markets

Investor Profile

CONTENTS

15

48

3

71

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. 2018: Presidential Finance Office established. 2019: TURIB- e-Warehouse Market started to operate.2021: Takasbank introduced private pension fund platform BEFAS.

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-Turkish Merchantile Exchange-Crowdfunding Platforms

-Insurance Association of Turkey

-Insurance Companies-Pension Companies

Banking

CAPITAL MARKET INSTITUTIONS IN TURKEY

6

Public Co.

Listed Co.

Settlement & Custody Bank (Takasbank)

Capital Markets Board

Banks

Brokerage Firms

Inv. Trusts

Asset Mgmt. Co.

TSPB(SRO)

Borsa Istanbul

Central Registry Agency

Licensing and Training Agency

Rating Co.Ind. Audit

Co.

Turkish Merchantile Exchange

Crowdfunding Platforms

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.

• 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 center 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) and private pension

fund platform (BEFAS)

• 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), TURIB e-Warehouse Market,

Crowdfunding System.

1

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 237,643 (~$ 32,000) in 2021, in case of

liquidation or bankruptcy of investment institutions.

• All investment institutions must 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 29.2 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 3.1 million and TL

15.8 million depending on

AUM.

• May establish only real

estate or venture capital

investment funds

• Mn. capital required varies

btw. TL 1.5 million and TL

7.9 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

80 78 74 71 71

44 44 44 45 45

50 5654 50 53

48 4949

49 50

2017 2018 2019 2020 2021/09

Investment Trusts Asset Management Firms Banks Brokerage Firms

221227

222215 219

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

JCR EURASIA CREDIT RATING AGENCY

• 6% stake

JOINT MORTGAGE FINANCE CORPORATION

• 5% stake

• one seat at the board of directors, out of 7 members

TURKISH CAPITAL MARKETS

BIST-100 INDEX & TRADING VOLUME

24

Source: Borsa Istanbul

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

0

200

400

600

800

1,000

1,200

1,400

1,60006.1

9

09.1

9

12.1

9

03.2

0

06.2

0

09.2

0

12.2

0

03.2

1

06.2

1

Trading Volume BIST 100bn. TL

MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION TL)

25


880

795

1,109

1,783

1,607

2017 2018 2019 2020 2021/06

BREAKDOWN OF BORSA ISTANBUL MARKET CAPITALIZATION

26


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019 2020

Technology

Financials

Services

Industrials

CONCENTRATION IN THE EQUITY MARKET (MCAP)

27


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019 2020

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

No. of Equities

6,718

6,130

237

0 1,000 2,000 3,000 4,000 5,000 6,000

NYSENasdaq OMX

ShanghaiTokyo

Hong KongEuronext

ShenzhenLondon Group

TMXBSE IndiaNSE India

Saudi ArabiaDeutsche

South KoreaOMX Nordic

SwissAustralia

TaiwanTehran

S. AfricaBrazilSpain

MoscowSingapore

ThailandIndonesiaMalaysia

MexicoIran

PhilippinesTel Aviv

Borsa IstanbulAbu Dhabi

SantiagoWarsaw

19,060

6,975

26,233

DOMESTIC MARKET CAPITALIZATION (2020, BILLION $)

28

Source: WFE

Rank: 32

33%

0% 50% 100% 150% 200% 250%

Hong KongS. Africa

Saudi ArabiaSwiss

TaiwanTehran

SingaporeOMX Nordic

TMXSouth Korea

TokyoEuronextMalaysiaAustralia

NYSEQatar

ThailandBSE IndiaNSE India

KuwaitNasdaq OMX

London GroupJamaica

SantiagoLuxembourg

PhilippinesBrazil

BahrainTel Aviv

New ZealandSpain

DeutscheCasablanca

Abu DhabiMauritius

IranHoChiMinh

MoscowShanghaiIndonesia

LimaColombia

CroatiaMexicoBeirutMalta

ShenzhenBorsa Istanbul

WarsawAmman

1,796%372%357%283%252%

MARKET CAPITALIZATION/GDP (2020)

29

Source: WFE, IMF, Turkstat

Rank: 48

336 343 344

273325

66 62 64

129

979 9 4 13

13

2017 2018 2019 2020 2021/06

Real Estate/Venture Capital Investment Trusts/Funds

ETF

Other Equities

Equities435

411 414 412 415

NUMBER OF SECURITIES IN THE EQUITY MARKET

30

Source: Borsa Istanbul Due to changes in the market structure of Bosra İstanbul in 2020, BIST Main Group 2 companies under the former ‘companies’ classification became a part of SubMarket

and were re-classified as ‘other companies’

Equities: BIST Main+BIST Star

Other Equities: SubMarket, Watchlist,

Pre-Market Trading Platform,

372

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

BSE IndiaTokyo

TMXNasdaq OMX

NYSESpain

Hong KongShenzhen

London GroupSouth Korea

AustraliaNSE IndiaShanghaiEuronext

OMX NordicTaiwan

MalaysiaWiener

WarsawTaipei

ThailandIndonesiaSingaporeDeutscheTel Aviv

HoChiMinhBorsa Istanbul

TehranHanoiBrazil

S. AfricaDhaka

ChittagongSantiagoColombo

3,394

5,620

3,758

NUMBER OF LISTED COMPANIES* (2020)

31

Source: WFE

Rank: 27

**Borsa Istanbul data excludes mutual funds, investmenttrusts and Pre-Market Trading Platform

EQUITY TRADING VOLUME OF BORSA ISTANBUL (BILLION TL)

32


1,4681,993 2,130

6,544

3,892

2017 2018 2019 2020 2021/06

904

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

Nasdaq OMXNYSE

CBOE USShenzhenShanghai

TokyoSouth Korea

London GroupCBOE Europe

Hong KongEuronextDeutsche

TMXNSE India

TaiwanSwissBrazil

AustraliaOMX Nordic

Borsa IstanbulSaudi Arabia

SpainTehran

ThailandTaipei

MoscowS. Africa

SingaporeMalaysia

IranIndonesia

Astana InternationalTel AvivMexico

Warsaw

63,63426,446

12,21317,84918,946

6,983

EQUITY TRADING VOLUME (2020, BILLION $)

33

Source: WFE

Rank: 20

0% 50% 100% 150% 200%

Borsa IstanbulShenzhen

Nasdaq OMXTaipei

South KoreaShanghai

BrazilLondon Group

TokyoNYSE

TaiwanDeutscheThailandAustralia

TMXNSE India

SwissIran

SpainMalaysia

Hong KongOMX Nordic

MoscowAthens

WarsawEuronextHungary

EgyptTel Aviv

SingaporeTehran

HoChiMinhS. Africa

381%

341%334%267%224%

TURNOVER RATIO (EQUITY TRADING VOLUME/MARKET CAPITALIZATION - 2020)

34

Source: WFE

Rank: 1

SECURITIES LENDING/BORROWING IN BORSA ISTANBUL (BILLION TL)

35

Source: Takasbank

13.0

14.2

22.021.1

25.3

2017 2018 2019 2020 2021/06

SHORT SELLING IN BORSA ISTANBUL

36


184 185 135 312 380

13%

9%

6%

5%

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

200

204

208

212

216

220

224

228

232

236

240

244

248

252

256

260

264

268

272

276

280

284

288

292

296

300

304

308

312

316

320

324

328

332

336

340

344

348

352

356

360

364

368

372

376

380

384

388

392

396

400

2017 2018 2019 2020 2021/06

Short Selling Volume (bn. TL)

Share in Total Volume

MARGIN TRADING

37

Source: TCMA

2.1 1.8 2.8 6.8 8.5

10,67012,101 11,895

25,076

28,891

2017 2018 2019 2020 2021/06

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

FUTURES TRADING VOLUME OF BORSA ISTANBUL

38

829 1,249 1,401 2,852 1,852

139 232

389

1,518

931

2017 2018 2019 2020 2021/06

Futures Trading Volume (bn. TL)

No. of Contracts (million)


1,119,700

357,1757

118,037

386

0 10,000 20,000 30,000 40,000 50,000

CME Group

ICE (Europe)

Deutsche Börse

BM&F Bovespa

ASX Group

Shanghai FE

CFFEX- China

Tokyo SE

Dalian CE-China

LME-London

Korea

Hong Kong

Zhengzhou CE

ICE (US)

TAIFEX

LSE Group

NSE-India

Euronext

OMX Nordic

Moscow

MCX-India

Spain

JSE

Borsa Istanbul

Malasysia DE

Matba Rofex

Dubai Gold

Mexican SE

TRADING VOLUME IN FUTURES MARKETS (2020, BILLION $)

39

Source: WFE

Rank: 24

NUMBER OF LISTED CORPORATE BONDS IN BORSA ISTANBUL

40

Source: WFE

662611

511

578 588

2017 2018 2019 2020 2021/06

MARKET VALUE OF DOMESTIC CORPORATE DEBT SECURITIES (BN.TL)

41

Source: Borsa İstanbul

8 9 12 12 14

22 27 23

34

44

40

50

76

84

80

2017 2018 2019 2020 2021/06

Bank Non Bank-Finance Non Finance

139

129

110

87

70

46,675

578

0 500 1,000 1,500 2,000

EuronextDeutscheShanghai

South KoreaOMX Nordic

London GroupNSE IndiaShenzhen

MoscowSwiss

S. AfricaBuenos Aires

TaipeiPanamaTel Aviv

ColombiaHong Kong

Borsa IstanbulLima

KazakhstanCosta Rica

TunisiaColomboHungary

New ZealandArmeniaBulgaria

BrazilGhana

MauritiusIran

TehranNigeria

BotswanaCasablanca

27,40714,8809,0447,3556,378

NUMBER OF LISTED CORPORATE BONDS (2020)

42

Source: WFE

Rank: 18

BOND TRADING VOLUME

43


561 565 592526

197

37 70

69

112

87

21

3144 77

49

2017 2018 2019 2020 2021/06

Eurobond Corporate Bonds Government Bonds

706

334

619666

715

Including over the counter transactions

Over the counter transactions as of 31.05.2021

REPO-REVERSE REPO, SWAP AND TAKASBANK MONEY MARKET TRADING VOLUME

44

Source: Borsa Istanbul Repo-reverse repo including over the counter transactions

Over the counter transactions as of 31.05.2021

4,733 4,706

16,476

22,412

8,362609 856

557

671

416

12

1,528

2,010

986

2017 2018 2019 2020 2021/06

BIST Swap

Takasbank Money Market

BIST Repo-Reverse Repo

5,575

18,560

9,765

5,342

25,418

INITIAL PUBLIC OFFERINGS

45


1,254 5,419263

1,124 11,407

3

9

6

8

23

2017 2018 2019 2020 2021/06

IPO Volume (mn. TL) No. of IPOs

EQUITY FINANCING

46


1.3

5.4

0.3 1.1

11.4

3.8

9.6

6.1

20.4

8.4

2017 2018 2019 2020 2021/06

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

19.8

5.1

15.0

6.3

21.5

CORPORATE DEBT SECURITIES ISSUANCE

47

Source: Borsa Istanbul Excluding private placement

130 179 210 199 125

1,217

1,3851,330

1,255

648

2017 2018 2019 2020 2021/06

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

INVESTMENT INSTITUTIONS

FIXED INCOME TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

49


1,0241,091 1,144 1,100

551

195191

191 272

127

2017 2018 2019 2020 2021/06

Brokerage Firms Banks

1,3721,3351,282

1,220

678

Excluding CBRT and Takasbank

Excluding Eurobond transactions

Including over the counter transactions

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

50

Source: Borsa Istanbul Excluding CBRT and TakasbankIncluding over the counter transactions

6,177 5,512

21,688

27,856

10,6151,177 1,138

5,659

6,742

3,301

2017 2018 2019 2020 2021/06

Brokerage Firms Banks

13,916

7,354 6,650

27,346

34,598

EQUITY TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

51


2,7733,626 3,906

12,394

6,989

163

361354

794

823

2017 2018 2019 2020 2021/06

Banks

Brokerage Firms

3,9874,260

2,936

7,811

13,189

FUTURES TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

52


1,628

2,4242,684

5,486

3,547

31

74119

217

157

2017 2018 2019 2020 2021/06

Banks

Brokerage Firms

3,704

1,658

2,499

2,803

5,703

Excluding CBRT

FOREX TRADING VOLUME (BILLION TL)

53

Source: TCMA

4,667 4,494 4,121

6,978

3,002

3,9125,211

3,611

5,463

2,288

2017 2018 2019 2020 2021/06

Liquidity Provider Client

7,732

9,705

8,578

5,289

12,442

CONCENTRATION IN TRADING VOLUMES (2021/06)

54

Source: Borsa Istanbul, TCMA

64% 66% 69%

81%

25% 23% 20%

17%12% 11% 11%

2%

Equity Fixed Income Futures Forex (Customer)

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

TOP 10 MEMBERS IN THE MARKETS (2021/06)

55


Excluding Central Bank and Takasbank*Including OTC transactions

Equity Market Futures Market

1 YAPI KREDİ YATIRIM 13% 1 YAPI KREDİ YATIRIM 21%

2 BANK OF AMERICA 10% 2 İŞ YATIRIM 10%

3 İŞ YATIRIM 9% 3 QNB FİNANS YATIRIM 7%

4 GARANTİ YATIRIM 6% 4 TACİRLER MENKUL 5%

5 AK YATIRIM 5% 5 İNFO YATIRIM 5%

6 İNFO YATIRIM 5% 6 DENİZ YATIRIM 4%

7 GEDİK YATIRIM 5% 7 GARANTİ YATIRIM 4%

8 DENİZ YATIRIM 4% 8 GEDİK YATIRIM 4%

9 A1 CAPITAL 4% 9 AK YATIRIM 4%

10 QNB FİNANS YATIRIM 4% 10 TEB YATIRIM 3%

Total (billion TL) 7,860 Total (billion TL) 3,704

Fixed Income Market* Forex Market* (Customer)

1 HSBC BANK 12% 1 GCM YATIRIM 16%

2 AKTİF YATIRIM BANK 9% 2 İŞ YATIRIM 14%

3 TÜRKİYE GARANTİ BANKASI 7% 3 INTEGRAL YATIRIM 11%

4 TÜRK EKONOMİ BANKASI 7% 4 AK YATIRIM 9%

5 JPMORGAN 7% 5 MEKSA YATIRIM 9%

6 OYAK YATIRIM 6% 6 İNFO YATIRIM 8%

7 AKBANK 5% 7 IŞIK MENKUL 4%

8 AK YATIRIM 4% 8 VENBEY YATIRIM 4%

9 TÜRKİYE VAKIFLAR BANKASI 4% 9 ALB MENKUL 4%

10 TÜRKİYE FİNANS KATILIM BANKASI 4% 10 DENİZ YATIRIM 3%

Total (trillion TL) 678 Total (billion TL) 3,002

NUMBER OF FINALIZED CORPORATE FINANCE DEALS (BROKERAGE FIRMS ONLY)

56

Source: TCMA

1,020

1,216 1,145 1,100

566

96

97113

93

75

80

8875

47

43

4

17

6 17

3

22

23

19

17

7

2017 2018 2019 2020 2021/06

Other Financing

Privatization

M&A

IPO&SPO-Equities

Corporate Actions

Other Consultancy

Bond Issuance

1,457

1,228

1,3621,278

721

INSTITUTIONAL INVESTMENTS (BILLION TL)

57


59 57

127152

21080 93

128

171

184

0.40.3

0.7

1.5

1.3

2718

28

54

64

2.6 1.5

3.0

6.5

5.1

2017 2018 2019 2020 2021/06

Venture Capital Inv. Trusts REITs

Investment Trusts Pension Funds

Mutual Funds

169 170

464

385

287

ASSET MANAGEMENT BY BROKERAGE FIRMS

58

Source: TCMA

1.9 2.1 3.8 3.2 3.2

2,649 4,331

3,388

3,048

2,556

2017 2018 2019 2020 2021/06

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

ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES

59

Source: TCMA

159 173 284 365 446

3,344 3,475 3,398

4,183

4,998

0

1,000

2,000

3,000

4,000

5,000

6,000

2017 2018 2019 2020 2021/06

Assets Under Management (bn. TL)

No. of Investors

CONCENTRATION IN PORTFOLIO MANAGEMENT FIRMS

60

Source: TCMA

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2017 2018 2019 2020 2021/06

Investment Trusts Discretionary Asset Man. Pension Funds Mutual Funds

61

Source: TCMA

TOP 5 MEMBERS IN PORTFOLIO MANAGEMENT ACTIVITIES (2021/06)

Mutual Funds Pension Funds

1 İŞ PORTFÖY 14% 1 ZİRAAT PORTFÖY 22%

2 YAPI KREDİ PORTFÖY 13% 2 AK PORTFÖY 18%

3 ZİRAAT PORTFÖY 12% 3 İŞ PORTFÖY 17%

4 AK PORTFÖY 12% 4 YAPI KREDİ PORTFÖY 14%

5 AZİMUT PORTFÖY 11% 5 GARANTİ PORTFÖY 13%

Total (billion TL) 209.6 Total (billion TL) 183.9

Discretionary Asset Management Investment Trusts

1 ZİRAAT PORTFÖY 20% 1 METRO PORTFÖY 35%

2 AZİMUT PORTFÖY 19% 2 İŞ PORTFÖY 28%

3 AK PORTFÖY 19% 3 HEDEF PORTFÖY 27%

4 İŞ PORTFÖY 18% 4 GARANTİ PORTFÖY 5%

5 İSTANBUL PORTFÖY 10% 5 OYAK PORTFÖY 4%Total (billion TL) 51.2 Total (million TL) 0.87

BROKERAGE FIRMS’ BRANCH NETWORK

62

Source: TCMA

9,361 9,387 9,332 9,252 9,479

291 289277 278

29540 46 64 95

116

2017 2018 2019 2020 2021/06

Bank Branches Branches Rep. Offices

9,6259,7229,692 9,673

9,890

BROKERAGE FIRMS’ EMPLOYEES

63

Source: TCMA

2,811 2,841 2,8523,215 3,465

1,940 2,075 2,112

2,318

2,613

2017 2018 2019 2020 2021/06

Male Employees Female Employees

5,533

4,9644,9164,751

6,078

ASSET MANAGEMENT COMPANIES’ EMPLOYEES

64

Source: TCMA

475 498 474 511 538

260279

264

290318

2017 2018 2019 2020 2021/06

Male Employees Female Employees

856

801

738777

735

BALANCE SHEET OF BROKERAGE FIRMS (BILLION TL)

65

Source: TCMA

21.920.4

25.1

38.6

43.3

23.121.9

27.2

41.3

46.3

4.76.2

7.6

11.613.8

2017 2018 2019 2020 2021/06

Current Assets Total Assets Shareholders' Equity

INCOME STATEMENT OF BROKERAGE FIRMS (MILLION TL)

66

Source: TCMA

2,510

3,557

4,264

8,494

5,727

774

1,4221,842

5,113

3,482

799

1,3431,728

4,424

2,966

2017 2018 2019 2020 2021/06

Total Revenues Operating Profit Net Profit

BREAKDOWN OF BROKERAGE FIRMS’ REVENUES (MILLION TL)

67

Source: TCMA

1,4351,928 1,986

5,306

2,891302

343900

1,318

862

240

323

344

335

394

485

904

967

1,461

1,539

2017 2018 2019 2020 2021/06

Brokerage Commissions Proprietary Trading Profits Corporate Finance

Asset Management Others 8,494

4,264

3,557

2,510

5,727

BALANCE SHEET OF ASSET MANAGEMENT COMPANIES (MILLION TL)

68

Source: TCMA

698

863

1,034

1,697

1,987

740

918

1,139

1,787

2,090

664

809

982

1,505

1,782

2017 2018 2019 2020 2021/06

Current Assets Total Assets Shareholders' Equity

INCOME STATEMENT OF ASSET MANAGEMENT COMPANIES (MILLION TL)

69

Source: TCMA

439

517

666

1,231

838

165 188

290

741

535

165232

318

655

480

2017 2018 2019 2020 2021/06

Total Revenues Operating Profit Net Profit

BREAKDOWN OF ASSET MANAGEMENT COMPANIES’ REVENUES (MILLION TL)

70

Source: TCMA

282358

488

891

68312199

108

157

75

4

5

4

4

2432

40

82

43

2017 2018 2019 2020 2021/06

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

666

517

439

838

1,231

INVESTOR PROFILE

BREAKDOWN OF TOTAL SAVINGS (BILLION TL)

72

Source: BRSA, CRA, TCMA estimates

1,6511,990

2,522

3,476 3,849

751

851

1,193

1,678

1,807

355

315

476

743

665

2017 2018 2019 2020 2021/06

Equities

Fixed Income

Deposits

2,756

3,156

4,191

6,3215,897

SAVINGS OF DOMESTIC INVESTORS

73

Source: BRSA, CRA, TCMA estimates Total Domestic Inv. Savings: TL 5,8 trillion

67% 68% 65% 62% 63%

27% 28%30%

31% 30%

5% 4% 5% 7% 7%

2017 2018 2019 2020 2021/06

Equities

Fixed Income

Deposits

SAVINGS OF FOREIGN INVESTORS

74

Source: BRSA, CRA, TCMA estimates Total Foreign Investors’ Savings: TL 566 bn

21%29% 28% 31%

38%

27%

23%18% 11%

12%

51% 48%54%

59%

49%

2017 2018 2019 2020 2021/06

Equities

Fixed Income

Deposits

NUMBER OF EQUITY INVESTORS

75

Number of Equity Investors

(thou.) 2017 2018 2019 2020 2021/06

Domestic Investors 1,031.3 1,081.3 1,193.7 1,977.0 2,432.4

1,025.9 1,076.1 1,188.1 1,970.4 2,425.4

4.7 4.6 4.9 5.7 6.2

0.7 0.7 0.7 0.8 0.9

Foreign Investors 9.5 9.6 9.7 12.0 13.1

6.2 6.2 6.6 9.2 10.5

1.4 1.5 1.4 1.3 1.2

1.9 1.9 1.7 1.5 1.4

Total 1,040.8 1,090.9 1,203.4 1,988.9 2,445.6

Source: CRA

Dom. Individuals

Dom. Corporations

Dom. Institutionals

For. Individuals

For. Corporations

For. Institutionals

NUMBER OF ACTIVE EQUITY INVESTORS (2021/06)

76

Source: TCMA

Active # of

Investors

1,211,694

# of Investors

2,445,559

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

01.2

017

05.2

017

09.2

017

01.2

018

05.2

018

09.2

018

01.2

019

05.2

019

09.2

019

01.2

020

05.2

020

09.2

020

01.2

021

05.2

021

Active # of Investors: Investors with at least

one order execution per month

BREAKDOWN OF MARKET CAPITALIZATION (BILLION TL)

77

Source: CRA, Borsa Istanbul

123 111186

381 385232 204

290

362279

525479

633

1040

943

2017 2018 2019 2020 2021/06

Privately Held

Foreigners' Portfolio

Domestics' Portfolio

1,607

880

795

1,109

1,783

SHARE OF FOREIGN INVESTORS

78

Source: CRA, Borsa Istanbul

0%

4%

8%

12%

16%

20%

24%

28%

32%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2017 2018 2019 2020 2021/06

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

Vol.MCap

EQUITY OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

79

Source: CRATotal equity portfolio: TL 665 bn

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2017 2018 2019 2020 2021/06

For. Other

For. Corporation

For. Individual

Dom. Other

Dom. Corporation

Dom. Individual

EQUITY TRADING VOLUME BY INVESTOR CATEGORIES*

80

Source: TCMA *Brokerage firms and investment banks only

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2017 2018 2019 2020 2021/06

For. Institutional

For. Corporation

For. Individual

Dom.

Institutional

Dom. Corporation

Dom. Individual

NUMBER OF CORPORATE BOND INVESTORS

81

2017 2018 2019 2020 2021/06

Domestic Investors 81,865 77,671 65,998 55,378 53,818

78,954 75,361 64,010 53,450 51,815

2,292 1,660 1,344 1,284 1,359

619 650 644 644 644

Foreign Investors 622 662 453 475 443

594 641 431 450 423

24 18 19 20 15

4 3 3 5 5

Total 82,487 78,333 66,451 55,853 54,261

Dom. Corporations

Number of Corporate Bond Investors

Dom. Individuals

Source: CRA

Dom. Institutionals

For. Individuals

For. Corporations

For. Institutionals

CORPORATE BOND OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

82

Source: CRA Total corporate bond portfolio: TL 105 bn.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2017 2018 2019 2020 2021/06

For. Other

For. Corporation

For. Individual

Dom. Other

Dom. Corporation

Dom. Individual

MUTUAL FUND INVESTORS

83

Source: CRA

56.4 52.8 122.7 143.8 197.6

3.02.9

3.0

3.1 3.1

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

-

50

100

150

200

250

2017 2018 2019 2020 2021/06

Portfolio Size (bn. TL)

Number of Investors (mn.)

PENSION FUND INVESTORS

84

Source: PMC Portfolio size includes government contributions

78 89 119 160 170

2

5

8

11

13

6.9 6.9 6.9 6.9

3.4

5.0 5.4 5.7 5.7

9.4 10.8

11.4 11.8

11.8

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

-

20

40

60

80

100

120

140

160

180

200

2017 2018 2019 2020 2021/06

Auto Enrolment - Total Portfolio Size (bn. TL)

Private Pension - Portfolio Size (bn. TL)

Private Pension - Number of Investors (mn.)

Auto Enrolment - Number of Investors (mn.)

Unique Number of Investors (mn.)

BREAKDOWN OF FUTURES TRADING VOLUME BY INVESTOR CATEGORIES*

85

Source: TCMA *Brokerage firms and investment banks only

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2017 2018 2019 2020 2021/06

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

BREAKDOWN OF FOREX TRADING VOLUME BY INVESTOR CATEGORIES

86

Source: TCMA

0%

20%

40%

60%

80%

100%

2017 2018 2019 2020 2021/06

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

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