Transcript 21 Aralýk- FEx

Asset Size - Sector
Asset Management in Turkey
As of 30/09/2013
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Asset Size - Sector
Since 2008;
 With a size of $12.3 billion, pension funds currently have 40% market share
 Money market funds market share has declined gradually as funds excluding-MMF came into prominence
 Discretionary portfolio management business has doubled
Money Market Funds
Excluding MM Funds
Pension Funds
Discretionary Portfolio Management
$ Billion
20.00
Discretionary
Portfolio
Management
11%
15.00
Pension
Funds
40%
10.00
Money Market
Funds
37%
5.00
Excluding MM
Funds
12%
0.00
2008
2009
2010
2011
2012
Sept 13
As of 30/09/2013
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Sector Analysis – A Growing Sector in Turkey
In the forthcoming period, interest on asset management
sector will increase parallel to decreasing interest rates and
stabilisation.
Turkey has the lowest savings ratio among countries with
GDP more than $100 billion. Incentives aimed at increasing
the savings ratio support asset management sector.
(PPS/GDP in Turkey 2%,OECD avg 12%)
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Sector Analysis – Total AUM is expected to reach $45 billion by 2015
(billion TRY)
2011
2012
2013T
2014
2015
GDP(Current prices)
Asset Management Sector Size
Mutual Fund Sector Size
Pension Funds Sector Size
1.294
49,5
29,9
14,3
1.435
56,3
29,5
20,3
1.571
65,3
31,5
26,4
1.740
75,4
31,3
35,6
1.933
89,6
31,1
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Discretionary Portfolio Man. Size
Asset Management Sector/GDP
Mutual Funds / GDP
5,3
3,8%
2,3%
6,5
3,9%
2,1%
7,4
4,2%
2,0%
8,5
4,3%
1,8%
10,5
4,6%
1,6%
PPS/GDP
1,1%
1,4%
1,7%
2,0%
2,5%
Mutual Fund Sector/GDP (%)
Mutual
Funds
Excl. MMF
Mutual Funds
Brazil
39.7
38.2
South Africa
31.6
22.0
South Korea
28.5
21.0
Turkey
2.3
0.6
Country
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2000
Founded as AKBANK
subsidiary
Market
Leader of
Pension
Funds
Market
Leader of
Discretionary
Portfolio
Management
Discretionary
Portfolio
Management
Total AUM
Mutual Funds
Pension Funds
5 Billion USD
Asset Size
1,3 Billion USD
Asset Size
2,7 Billion USD
Asset Size
1 Billion USD
Asset Size
%16 Market Share
%8,5 Market Share
%22 Market Share
%25 Market Share
As of 30/09/2013
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Services
Mutual and Pension Fund Management
 Management of investment funds founded by Akbank
 Management of pension funds founded by AvivaSA and Groupama
 Experienced and qualified portfolio manager staff
 Investment strategies on variable asset classes
 Superior risk management and compliance/internal control mechanisms
Discretionary Portfolio Management
 Client specific asset allocation, portfolio diversification and investment strategies
 A focused approach on risk/return expectation and management
 Periodical reporting and portfolio monitoring
Investment Consulting
 Providing broad perspective to “Individual Segment” clients on investment strategies
 Investment ideas and regular market reports
 Identification of client risk profile
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Investment Instruments
 Among mutual funds, MM, fixed income securities and capital protected funds are at the forefront
 Among pension funds. public borrowing and balanced funds have an significant size
Mutual Funds
Pension Funds
1%
1%
Balanced (Flexible &
Composite)
Bill & Bond
4%
9%
10%
B- Flexible
Equity
5%
3%
FX Sovereign Debt
26%
6%
Equity
Money Market
55%
Commodity
3%
9%
Foreign Securities
Capital Protected
Others
Money Market
Bill & Bond
62%
6%
0%
International
Securities Funds
As of 30/09/2013
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Investment Fund Universe of Ak Asset Management
 Fixed Income Securities
 Flexible Funds
 Equity
 Commodity
 Foreign Securities
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BIST-30
Gold
19
Equity
Prem. Equity
Expected Return
FT LatinAmerica
FT Europe
14
Eurobond
1-1 Flexiable
Prem.
Bill&Bond
4
Commodity
BIST
Dividend 25
FT America
Corporate
Bond
9
Capital
Foreign
securities
Flexiable
Serbest
FT BRIC
FTAsia
Long Term
Bill&Bond
Sukuk
Money
Market
-1 -1
Short Term
Bill Bond
4
9
14
19
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Potantial Risk
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Achievements And Awards
The First;
 Gold Fund (2006)
 Capital Protected Mutual Fund (2007)
 Risk Management Software (2007)
 Turkish AM company to sign UN Principles for Responsible Investment (2010)
 Market neutral long/short hedge fund (2010)
 Commodity Fund of Funds Basket (2011)
 TRY Money Market Fund in Japan
Awards
 Best Investment Management Company in Turkey – World Finance 2011
 Best ESG Asset Manager in Turkey – World Finance 2011
 Best Asset Manager in Turkey – EMEA Finance 2011
 Best Investment Management Company in Turkey – World Finance 2012
 Structured Products Best in Turkey – Structured Products Europe Awards 2013
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AK ASSET MANAGEMENT- Institutional Investment Services
Investment Process
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Fixed Income Investment Process
Fixed Income investment style is a combination of Top–Down & Spread Trading. Fixed Income Investment
Team aims to achieve the highest possible return measured against the benchmark. The risks related to
movements in bond prices, resulting from interest-rate fluctuations and currency developments and to some
extent changes in the quality of the corporate held portfolio.
Investment Style
The investment style is a combination of Top – Down & Spread Trading.
Top-down approach: Analysis of economic conditions and duration determination
Spread trading: Improvement of the bond portfolio yield without increasing the risk level, taking
advantage of discrepancies occurring in the bond market
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Fixed Income Committee (Scorecard Meetings)
Main subsections of the scorecard meetings are:
 Global Markets
 Global Macroeconomy
 Global Interest Rate Outlook
 Domestic Macroeconomy
 Banking and Central Bank of Turkey (CBRT) Policy
 Political Outlook
Quantitative Score (Algorithm)
 Fund Managers’ Views
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Fixed Income Committee – Global Markets
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Fixed Income Committee (Scorecard Meetings)
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Fixed Income Committee (Scorecard Meetings)
Committee analyzes the global central bank policies and rate decisions
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Fixed Income Committee (Scorecard Meetings)
Committee observes
asset swap spreads,
breakeven inflations and
yield curve structure.
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Capital Protected Funds
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IInvestment Process
Capital Protected Funds
For getting the highest return in accordance with the option structure and underlying asset
 Research on variable assets, including equities, ETFs, FX, Commodity
 Choose the best option structure minimizing the option cost and maximizing the potential cash
settlement
 Auction within international investment banks for option trade on Fund’s Trade Date
Investment Universe Research
Equity Universe
FX Universe
 G-7 Equity Indices
 BRIC FX
 Emerging Countries
Equity Indices
 G-7 FX
 TL FX
Option Structure Research
Prop Indices
 Long Only Asset Basket
 Vol Controlled Indices
Execution
Commodities
Fixed Income
Portfolio
 Brent , Gold
 Government Bonds
 Industrial Metals
Corporate Bonds
 Fund Linked Indices
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IInvestment Process
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Exotic Option Structure Examples:
Trade Date:
Final Valuation Date:
Underlying:
Bloomberg Ticker:
20/09/2013
14/11/2014
Akbank Güvenli Strateji Index ( PROP INDEX)
IND1AKDI Index
Akbank Safe Strategy Index fund is an fund linked derivative product. The fund aims to protect
%100 of initial capital invested on the fund.
Also, it provides the participation to Akbank Safe Strategy Index appreciation. The index
invests on Akbank Mutual Funds, which are located on Luxembourg and trading in EUR. The
index has its dynamic momentum strategy, which determines if the index will invest on Equity
or Fixed Income Funds. If Akbank Equity closing price is higher than last 30 days price
average; the index invests on %50 Fixed Income+%50 Equity Fund. If vice versa the index
invests on Fixed Income Funds and on Turkish rates, namely 3m TRY Libor. In addition to
momentum strategy; the index has volatility control mechanism which aims to guarantee that
the realized volatility of the index will be equal to %10. Depending on realized volatility; the
index either increases or decreases the leverage until realized volatility is equal to target
volatilty.
This fund linked derivative strategy is first used by Ak Asset Management in Turkey.
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Exotic Option Structure Examples:
Trade Date:
12/09/2012
Final Valuation Date:
10/09/2013
Underlying:
iSHARES ASIA TRUST- iSHARES FTSE A50 CHINA INDEX
Bloomberg Ticker:
2823 HK Equity
Barrier Level:
%125
If a Barrier Event has occurred: Notional Amount * Rebate
Where Rebate = %11
The fund invests on iShares ETF, which is the most liquid financial asset to be exposed
to China Equity Index. Because we bought knock-out call rather than simple vanilla call
in our portfolio, we managed to provide higher than %100 participation to appreciation of
the China index. The fund matured on September the 9th 2013 with 7,1%. However
because China index knocked out during the tenor of option we managed to get high
rebate multiplied with participation ratio. At the end, our fund’s return was 11,64% ,
which is much higher than China Index return.
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Exotic Option Structure Examples:
Trade Date:
30/04/2012
Final Valuation Date:
15/05/2013
Underlying:
USDTRY ve EURTRY
Fon, vade sonunda USD/TL ve EURO/TL kurlarının belirlenen bariyer seviyelerinin
altında kalması durumunda %4 sabit getirinin üzerine belirlenen ek kupon getirisinden
iştirak oranı ölçüsünde yararlanma imkanı sunmaktadır. Fon vade sonunda %9,86 getiri
elde etmiştir.
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Exotic Option Structure Examples:
Trade Date:
18/10/2012
Final Valuation Date:
15/10/2013
Underlying:
İtalya ve İspanya Endeksleri
Bloomberg Ticker:
IBEX & MIB
Getiri üzerinde Knock-out: %25
Fon Avrupa Hisse Senedi Endekslerine yatırım yapmaktadır. Bu sene en iyi getiri elde
eden endeksler arasında yer alan İspanya ve İtalya endekslerine yatırım yapmaktadır.
2012’de Çevre Avrupa Ülkeleri olarak adlandırılan borsalara çoğu yatırımcı yatırım
yapmamıştı ancak biz yatırımcılara doğru riskli ürünleri seçerek anapara koruması da
sağlayıp yüksek getiri imkanı sunduk.
Fon vade sonunda %17.7 getiri elde etmiştir.
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Thank You
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