Turkish Capital Markets · 2019-12-25 · CAPITAL MARKET INSTITUTIONS IN TURKEY 6 Rating Co. Ind. Audit Co. Settlement & Custody Bank (Takasbank) Capital Markets Board Banks Brokerage

Turkish Capital MarketsDecember 2019

23

2

Turkish Capital Markets Association

Investment Institutions

Structure of the Turkish Financial Markets

Turkish Capital Markets

Investor Profile

CONTENTS

15

47

3

70

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 - 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

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.

• 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 (CCP) for Borsa Istanbul futures & options,

debt securities and swap markets.

o The national numbering agency of Turkey.

• It operates a money market.

• Takasbank operates the Securities Lending & Borrowing Market and Borsa

Istanbul Money Market and acts as the CCP for those markets as well.

• It serves as a custodian to private pension system.

• It operates the Electronic Fund Distribution Platform (TEFAS).

• The Bank allocates the legal entity identifier codes.

• 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),

and 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 177,681 (~$ 31,000) 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

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 27.4 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


• 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 milliondepending on AUM.

• May establish only venture

capital investment funds

• Mn. capital required varies btw. TL 1 million and TL 5 milliondepending 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

95 88 80 78 74

4443

44 44 44

4652

50 5654

47 4848 49

49

2015 2016 2017 2018 2019

Investment Trusts Asset Management Firms Banks Brokerage Firms

227222

231221

232

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

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

04-1

7

05-1

7

06-1

7

08-1

7

09-1

7

11-1

7

12-1

7

02-1

8

03-1

8

04-1

8

06-1

8

07-1

8

09-1

8

10-1

8

12-1

8

01-1

9

03-1

9

04-1

9

05-1

9

07-1

9

08-1

9

10-1

9

11-1

9

Trading Volume BIST-100 (TL)Puan Mn. TL

MARKET CAPITALIZATION OF BORSA ISTANBUL (BILLION TL)

25


555 614 880 795 957

2015 2016 2017 2018 2019/09

BREAKDOWN OF BORSA ISTANBUL MARKET CAPITALIZATION

26


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)

27


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 $)

28

Source: WFEWFE definition excludes investment funds, ETFs, unit trusts, unlisted companies,

holding companies with a mere business of holding shares on the exchange.

Rank: 33

MARKET CAPITALIZATION/GDP (2018)

29

Source: WFE, IMF

1,052%235%205%

198%

19%

0% 40% 80% 120% 160% 200%

Hong KongJSE

SwissSingapore

TaiwanTMX

MalaysiaTokyo

ThailandNYSE

OMX NordicAustralia

South KoreaSantiagoEuronextJamaica

PhilippinesBSE IndiaNSE India

London GroupLuxembourg

MauritiusBarbados

Saudi ArabiaOslo Bors

BahrainCasablancaHoChiMinh

SpainTel Aviv

BrazilNasdaq OMX

IndonesiaDeutsche

New ZealandLima

MoscowMalta

CroatiaTehranMexico

ColombiaIrish

ShanghaiAmmanWarsawWiener

PanamaMuscat

KazakhstanTunisia

Borsa IstanbulRank: 52

301 289 289 295 298

68 6963 58

57

22 18 18 18 13

3938 41 43 45

2015 2016 2017 2018 2019/09

Real Estate/Venture Capital

Investment Trusts/Funds

ETF+Inv. Trusts

430414 411 414 413

NUMBER OF SECURITIES IN THE EQUITY MARKET

30


Equities: BIST Main+BIST Star

Other Equities: BIST Emerging Companies, Watchlist,

Pre-market Trading Platform

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)

31

Source: WFE

Rank: 26

Excluding Funds, Investment Trusts and Pre-Market Trading Platform

EQUITY TRADING VOLUME OF BORSA ISTANBUL (BILLION TL)

32


555 614 880 795 957

2015 2016 2017 2018 2019/09

419

0 2,000 4,000 6,000 8,000

Nasdaq OMX

NYSE

BATS US

BATS Chi-x Europe

Shenzhen

Tokyo

Shanghai

London Group

South Korea

Hong Kong

Deutsche

Euronext

TMX

NSE India

Swiss

Taiwan

Australia

OMX Nordic

Brazil

Spain

JSE

Borsa Istanbul

Thailand

Taipei

Saudi Arabia

11,78616,036

43,656

22,941

EQUITY TRADING VOLUME (2018, BILLION $)

33

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)

34

Source: WFE

Rank: 4

EQUITY LENDING/BORROWING (BILLION TL)

35

Source: Takasbank

5.6

7.4

13.0

14.2

15.8

2015 2016 2017 2018 2019/09

SHORT SELLING IN BORSA ISTANBUL

36


178 170 184 185 88

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 2019/09

Short Selling Volume (bn. TL)

Share in Total Volume

MARGIN TRADING

37

Source: TCMA

1.5 1.5 2.1 1.8 2.3

9,585 9,390

10,67012,101

11,387

2015 2016 2017 2018 2019/09

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

FUTURES TRADING VOLUME OF BORSA ISTANBUL

38

Source: Borsa Istanbul, TurkDex

567 580 829 1,249 1,005

88100

139

232

269

2015 2016 2017 2018 2019/09

Futures Trading Volume (bn. TL)

No. of Contracts (million)

1,399,262

419,172

118,080

269

0 5,000 10,000 15,000 20,000 25,000 30,000

Chicago Mercantile Exchange

BM&FBOVESPA

Eurex

Deustche Boerse

Australia

CFFEX- China

Hong Kong

Montreal

Euronext

Korea

Zhengzhou CE

ICE (US)

Osaka

Singapore

NSE-India

OMX Nordic

Taiwan Futures Exchange

Asia-Pasific

Moscow

MCX-India

Spain

Johannesburg

BSE India

Borsa Istanbul

Buenos Aires

85,167

36,124

TRADING VOLUME IN FUTURES MARKETS (2018, BILLION $)

39

Source: WFE

Rank: 24

NUMBER OF LISTED CORPORATE BONDS IN BORSA ISTANBUL

40

Source: WFE

464519

662611

489

2015 2016 2017 2018 2019/09

7,968

6,450

3,923

611

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

BSE India

South Korea

London Group

Shanghai

Deutsche

NSE India

Luxembourg

JSE

Moscow

Taipei

Buenos Aires

Swiss

Tel Aviv

Panama

Shenzhen

Euronext

Borsa Istanbul

Colombia

Lima

OMX Nordic

Hong Kong

Brazil

Oslo Bors

Tunisia

Kazakhstan

8,739

3,201

3,124

NUMBER OF LISTED CORPORATE BONDS (2018)

41

Source: WFE

Rank: 17

FIXED INCOME TRADING VOLUME (BILLION TL)

42


485

634581 594

439

38

26

38 71

56

2015 2016 2017 2018 2019/09

Corporate

Bonds

Government

Bonds

666

496523

661

619

BIST REPO-REVERSE REPO AND TAKASBANK MONEY MARKET TRADING VOLUME(BILLION TL)

43

Source: Borsa Istanbul, Takasbank

3,536

7,064

4,733 4,706

10,696

257

428

609 856

412

2015 2016 2017 2018 2019/09

Takasbank Money Market

BIST Repo-Reverse Repo

5,562

11,108

3,793

7,492

5,342

INITIAL PUBLIC OFFERINGS

44


119343 1,254 5,419 161

6

2

3

9

4

2015 2016 2017 2018 2019/09

IPO Volume (mn. TL) No. of IPOs

EQUITY FINANCING

45


0.1 0.31.3

5.4

0.2

2.0 1.6

3.8

9.6

5.6

2015 2016 2017 2018 2019/09

SPO + Rights Issue (bn. TL)

IPO (bn. TL)

5.9

2.1 2.0

5.1

15.0

CORPORATE DEBT SECURITIES ISSUANCE

46

Source: Borsa Istanbul *Excludes private placement

80 90 130 179 165

621

760

1,217

1,385

1,012

2015 2016 2017 2018 2019/09

Size of Corporate Bonds Issued (bn. TL)

No. of Corporate Bonds Issued

INVESTMENT INSTITUTIONS

942

1,1251,027

1,095

818

117

184

196

193

132

2015 2016 2017 2018 2019/09

Brokerage Firms

Banks

950

1,059

1,3081,223

1,289

FIXED INCOME TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

48

Source: Borsa IstanbulExcluding Central Bank and Takasbank.

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

49

Source: Borsa IstanbulExcluding Central Bank and Takasbank.

14,70013,546

6,177 5,512

13,710

1,614

1,331

1,1771,138

3,775

2015 2016 2017 2018 2019/09

Brokerage Firms Banks

17,485

16,315

14,877

7,3546,650

EQUITY TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

50


2,052 2,027

2,773

3,626

2,587

163

361

250

2015 2016 2017 2018 2019/09

Banks Brokerage Firms 3,987

2,8372,936

2,0272,052

FUTURES TRADING VOLUME OF INTERMEDIARIES (BILLION TL)

51

Source: Borsa Istanbul Excluding Central Bank.

1,131 1,154

1,628

2,424

1,9235 4

6

31

74

2015 2016 2017 2018 2019/09

Banks

Brokerage Firms

2,010

1,135 1,160

1,658

2,499

FOREX TRADING VOLUME (BILLION TL)

52

Source: TCMA

9,546

12,245

4,667 4,4943,107

7,459

9,604

3,9125,211

2,718

2015 2016 2017 2018 2019/09

Liquidity Provider

Client

5,825

9,7058,578

21,850

17,005

CONCENTRATION IN TRADING VOLUMES (2019/09)

53

Source: Borsa Istanbul, TCMA

65% 68% 66%

82%

20%24%

20%

15%15%

7%14%

4%

Equity Fixed Income Futures Forex (Customer)

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

TOP 10 MEMBERS IN THE MARKETS (2019/09)

54


Equity Market Futures Market

1 YAPI KREDİ YATIRIM 13% 1 YAPI KREDI YATIRIM 16%

2 MERRILL LYNCH 9% 2 IS YATIRIM 12%

3 İŞ YATIRIM 8% 3 GARANTI YATIRIM 8%

4 GARANTİ YATIRIM 7% 4 QNB FINANS YATIRIM 6%

5 AK YATIRIM 7% 5 TEB YATIRIM 5%

6 GEDİK YATIRIM 5% 6 DENIZ YATIRIM 4%

7 A1 CAPİTAL YATIRIM 4% 7 AK YATIRIM 4%

8 QNB FİNANS YATIRIM 4% 8 GEDIK YATIRIM 3%

9 YATIRIM FİNANSMAN 4% 9 TACIRLER YATIRIM 3%

10 DENİZ YATIRIM 4% 10 GCM YATIRIM 3%

Total (bn. TL) 2,837 Total (bn. TL) 2,010

Fixed Income Market Forex Market (Customer)

1 HSBC BANK 12% 1 AK YATIRIM 16%

2 YAPI VE KREDİ BANKASI 9% 2 İŞ YATIRIM 15%

3 TÜRK EKONOMİ BANKASI 9% 3 İNTEGRAL YATIRIM 10%

4 TÜRKİYE İŞ BANKASI 8% 4 GCM MENKUL 9%

5 TÜRKİYE GARANTİ BANKASI 8% 5 MEKSA YATIRIM 8%

6 AKBANK T. 5% 6 DENİZ YATIRIM 6%

7 ING BANK 5% 7 A1 CAPİTAL YATIRIM 4%

8 JPMORGAN CHASE BANK 5% 8 İNFO YATIRIM 4%

9 CITIBANK 4% 9 GEDİK YATIRIM 4%

10 FİNANSBANK 3% 10 QNB FİNANS YATIRIM 3%

Total (bn. TL) 950 Total (bn. TL) 3,107

NUMBER OF FINALIZED CORPORATE FINANCE DEALS (BROKERAGE FIRMS ONLY)

55

Source: TCMA

608702

1,020

1,216

888

34

90

96

97

68

87

72

80

88

56

6

2

4

17

3

11

15

22

23

15

2015 2016 2017 2018 2019/09

Other Financing

Privatization

M&A

Pay Halka Arzı

Corporate Actions

Other Consultancy

Bond Issuance

1,228

883

746

1,456

1,035

INSTITUTIONAL INVESTMENTS (BILLION TL)

56


37 4459 57

1024858

80 93

115

0.3

0.3

0.3

0.4

0.3

21

24

2718

20

1.3

1.1

2.6 1.5

1.9

2015 2016 2017 2018 2019/09

Venture Capital Inv. Trusts REITs

Investment Trusts Pension Funds

Mutual Funds

169

240

108

128

170

ASSET MANAGEMENT BY BROKERAGE FIRMS

57

Source: TCMA

1.3 1.3 1.9 2.1 3.6

2,649

3,674

4,085

4,331

4,654

2015 2016 2017 2018 2019/09

Assets Under Management (mn. TL)

No. of Investors

ASSET MANAGEMENT BY ASSET MANAGEMENT COMPANIES

58

Source: CMB, TCMA

101 122 158 173 245

2,688

3,082

3,344

3,475 3,422

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2015 2016 2017 2018 2019/09

Assets Under Management (bn. TL)

No. of Investors

CONCENTRATION IN ASSET MANAGEMENT COMPANIES (2019/09)

59

Source: TCMA

66%

83%87%

99%

20%

14% 8%

1%

14%3% 5%

Mutual Funds Pension Funds Discretionary Asset Man. Investment Trusts

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

60

Source: TCMA

TOP 5 MEMBERS IN PORTFOLIO MANAGEMENT ACTIVITIES (2019/09)

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 (million TL) 101,969 Total (million TL) 115,378

Discretionary Asset Management Investment Trusts

1 ZİRAAT PORTFÖY 32% 1 İŞ PORTFÖY 44%

2 AK PORTFÖY 20% 2 METRO PORTFÖY 35%

3 İŞ PORTFÖY 17% 3 HEDEF PORTFÖY 8%

4 AZİMUT PORTFÖY 11% 4 GARANTİ PORTFÖY 7%

5 İSTANBUL PORTFÖY 7% 5 OYAK PORTFÖY 5%Total (million TL) 27,305 Total (million TL) 602

BROKERAGE FIRMS’ BRANCH NETWORK

61

Source: TCMA

6,712 9,261 9,361 9,387 9,404

323

310291 289 284

76

59 40 46 59

2015 2016 2017 2018 2019/09

Bank Branches Branches Rep. Offices

9,7479,6929,630

7,111

9,722

BROKERAGE FIRMS’ EMPLOYEES

62

Source: TCMA

3,845 3,735

2,811 2,841 2,810

2,787 2,743

1,940 2,075 2,029

2015 2016 2017 2018 2019/09

Male Employees Female Employees

4,8394,9164,751

6,4786,632

ASSET MANAGEMENT COMPANIES’ EMPLOYEES

63

Source: TCMA

432 445 475 498 477

266 275260

279270

2015 2016 2017 2018 2019/09

Male Employees Female Employees

747777

735720

698

BALANCE SHEET OF BROKERAGE FIRMS (BILLION TL)

64

Source: TCMA

14.2

20.1

21.920.4

26.2

15.3

21.2

23.121.9

28.0

4.0 4.3 4.76.2

7.0

2015 2016 2017 2018 2019/09

Current Assets Total Assets Shareholders' Equity

INCOME STATEMENT OF BROKERAGE FIRMS (MILLION TL)

65

Source: TCMA

2,0012,175

2,510

3,557

3,071

301 332

774

1,4221,311

433 483

799

1,3431,247

2015 2016 2017 2018 2019/09

Total Revenues Operating Profit Net Profit

BREAKDOWN OF BROKERAGE FIRMS’ REVENUES (MILLION TL)

66

Source: TCMA

1,3321,511 1,435

1,928

1,361

89106 302

343

699170

164240

323

271

360358

485

904

697

2015 2016 2017 2018 2019/09

Brokerage Commissions Proprietary Trading Profits Corporate Finance

Asset Management Others

3,071

2,001

3,557

2,510

2,175

BALANCE SHEET OF ASSET MANAGEMENT COMPANIES (MILLION TL)

67

Source: TCMA

472

571

698

863889

507

609

740

918

985

456

552

664

809857

2015 2016 2017 2018 2019/09

Current Assets Total Assets Shareholders' Equity

INCOME STATEMENT OF ASSET MANAGEMENT COMPANIES (MILLION TL)

68

Source: TCMA

296

347

439

524

430

88105

165188

154

91111

165

232

190

2015 2016 2017 2018 2019/09

Total Revenues Operating Profit Net Profit

BREAKDOWN OF ASSET MANAGEMENT COMPANIES’ REVENUES (MILLION TL)

69

Source: TCMA

177211

282

358326

91

99

121

9971

4

4

4

5

3

22

20

24

32

31

2015 2016 2017 2018 2019/09

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

499

434

337

294

435

INVESTOR PROFILE

BREAKDOWN OF TOTAL SAVINGS (BILLION TL)

71

Source: BRSA, CRA, TCMA calculations

1,2451,453

1,7112,036 2,362

574

627

734

830

1,045

226

247

355

315

385

2015 2016 2017 2018 2019/09

Equities

Fixed Income

Deposits

2,045

2,327

2,800

3,792

3,181

SAVINGS OF DOMESTIC INVESTORS

72

Source: BRSA, CRA, TCMA calculations

Total Domestic Inv. Savings as of

September 2019: TL 3.3 trillion

67% 69% 68% 69% 67%

28% 27% 26% 27% 29%

5% 5% 5% 4% 4%

2015 2016 2017 2018 2019/09

Equities

Fixed Income

Deposits

SAVINGS OF FOREIGN INVESTORS

73

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

September 2019: TL 508 bn

26% 27% 27%33% 33%

30% 28% 25%

22%19%

44% 45% 48% 45%49%

2015 2016 2017 2018 2019/09

Equities

Fixed Income

Deposits

NUMBER OF EQUITY INVESTORS

74

(thou.) 2015 2016 2017 2018 2019/09

Domestic Investors 1,049.2 1,031.3 1,081.3 1,169.2 1,165.2

1,043.5 1,025.9 1,076.1 1,163.3 1,159.4

5.0 4.7 4.6 5.2 5.0

0.7 0.7 0.7 0.8 0.8

Foreign Investors 9.8 9.5 9.6 9.7 9.7

6.2 6.2 6.2 6.5 6.5

1.5 1.4 1.5 1.5 1.5

2.1 1.9 1.9 1.8 1.7

Total 1,059.0 1,040.8 1,090.9 1,178.9 1,174.9

Dom. Individuals

Dom. Corporations

Dom. Institutionals

Number of Equity Investors

Source: CRA

For. Individuals

For. Corporations

For. Institutionals

BREAKDOWN OF MARKET CAPITALIZATION (BILLION TL)

75

Source: CRA, Borsa Istanbul

85 89 123 111 137

141 157

232204

248

329368

525

479

572

2015 2016 2017 2018 2019/09

Privately Held

Foreigners' Portfolio

Domestics' Portfolio

957

555

614

880

795

SHARE OF FOREIGN INVESTORS

76

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 2019/09

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

Vol.MCap

EQUITY OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

77

Source: CRATotal equity portfolio as of September 2019: TL 385 bn

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019/09

For. Other

For. Corporation

For. Individual

Dom. Other

Dom. Corporation

Dom. Individual

BREAKDOWN OF EQUITY TRADING VOLUME BY INVESTOR CATEGORIES

78

Source: TCMA

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019/09

For. Institutional

For. Corporation

For. Individual

Dom.

Institutional

Dom. Corporation

Dom. Individual

NUMBER OF CORPORATE BOND INVESTORS

79

2015 2016 2017 2018 2019/09

Domestic Investors 135,690 96,771 81,865 77,671 71,831

131,798 93,217 78,954 75,361 69,427

3,197 2,886 2,292 1,660 1,746

695 668 619 650 658

Foreign Investors 1,066 705 622 662 480

1,034 677 594 641 461

24 25 24 18 16

8 3 4 3 3

Total 136,756 97,476 82,487 78,333 72,311

Dom. Corporations

Source: CRA

Dom. Institutionals

For. Individuals

For. Corporations

For. Institutionals

Number of Corporate Bond Investors

Dom. Individuals

CORPORATE BOND OWNERSHIP ACCORDING TO INVESTOR CATEGORIES

80

Source: CRA Total corporate bond portfolio as of September 2019: TL 90 bn.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019/09

For. Other

For. Corporation

For. Individual

Dom. Other

Dom. Corporation

Dom. Individual

MUTUAL FUND INVESTORS

81

Source: CRA

38.9 45.1 56.4 52.8 97.3

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

2015 2016 2017 2018 2019/09

Portfolio Size (bn. TL)

Number of Investors (mn.)

48.0 60.8

77.8 87.9

108.0

1.8

4.6

7.3

6.0 6.6

6.6

10.3

PP 6.8

AE 5.2

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

2015 2016 2017 2018 2019/09

Total Portfolio Size (bn. TL)

Portfolio Size (bn. TL)

Number of Investors (mn.)

PENSION FUND INVESTORS

82

Source: PMC

PP: Voluntary private pension schemesAE: Auto-enrolment

Portfolio size includes government contributions.

BREAKDOWN OF FUTURES TRADING VOLUME BY INVESTOR CATEGORIES*

83

Source: TCMA *Brokerage firms and investment banks only

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015 2016 2017 2018 2019/09

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%

2015 2016 2017 2018 2019/09

For. Institutional

For. Corporation

For. Individual

Dom. Institutional

Dom. Corporation

Dom. Individual

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Documents

Turkish Capital Markets · 2019-12-25 · CAPITAL MARKET INSTITUTIONS IN TURKEY 6 Rating Co. Ind. Audit Co. Settlement & Custody Bank (Takasbank) Capital Markets Board Banks Brokerage