Asset Size - Sector
As of 30/09/2013
1

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
20,00
$ Billion
15,00
10,00
5,00
0,00
2008 2009 2010
Money Market Funds
Excluding MM Funds
Pension Funds
Discretionary Portfolio Management
2011 2012 Sept 13
Discretionary
Portfolio
Management
11%
Pension
Funds
40%
Money Market
Funds
37%
Excluding MM
Funds
12%
As of 30/09/2013
2

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%)
3

Total AUM is expected to reach $45 billion by 2015
(billion TRY)
GDP(Current prices)
Asset Management Sector Size
Mutual Fund Sector Size
Pension Funds Sector Size
Discretionary Portfolio Man. Size
Asset Management Sector/GDP
Mutual Funds / GDP
PPS/GDP
2011
1.294
49,5
29,9
14,3
5,3
3,8%
2,3%
1,1%
2012
1.435
56,3
29,5
20,3
6,5
3,9%
2,1%
1,4%
2013T
1.571
65,3
31,5
26,4
7,4
4,2%
2,0%
1,7%
2014
1.740
75,4
31,3
35,6
8,5
4,3%
1,8%
2,0%
2015
1.933
89,6
31,1
48
10,5
4,6%
1,6%
2,5%
Country
Mutual Fund Sector/GDP (%)
Mutual
Funds
Excl. MMF
Mutual Funds
Brazil
South Africa
South Korea
Turkey
39.7
31.6
28.5
2.3
38.2
22.0
21.0
0.6
4

2000
Founded as AKBANK subsidiary
Total AUM
5 Billion USD
Asset Size
%16 Market Share
Mutual Funds
1,3 Billion USD
Asset Size
%8,5 Market Share
Pension Funds
2,7 Billion USD
Asset Size
%22 Market Share
Discretionary
Portfolio
Management
1 Billion USD
Asset Size
%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
6

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
Bill & Bond
B- Flexible
Equity
Money Market
Commodity
Foreign Securities
Capital Protected
Others
4%
6%
9%
1%
10%
62%
5%
3%
55%
Pension Funds
1%
26%
9%
6%
0%
3%
Balanced (Flexible &
Composite)
FX Sovereign Debt
Equity
Money Market
Bill & Bond
International
Securities Funds
As of 30/09/2013
7

Investment Fund Universe of Ak Asset Management
 Fixed Income Securities
 Flexible Funds
 Equity
 Commodity
 Foreign Securities
24
19
14
9
Capital
Serbest
Prem.
Bill&Bond
-1
4
Money
Market
-1
Short Term
Bill Bond
4
Sukuk
Corporate
Flexiable
Bond
BIST-30
Gold
Equity
FT LatinAmerica
FT Europe
FTAsia
FT BRIC BIST
Dividend 25
Commodity
Prem. Equity
Foreign securities
FT America
Eurobond
Long Term
Bill&Bond
1-1 Flexiable
9 14 19
Potantial Risk
24
8

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
9

AK ASSET MANAGEMENT- Institutional Investment Services
10

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
11

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
12

Fixed Income Committee – Global Markets
13

Fixed Income Committee (Scorecard Meetings)
14

Fixed Income Committee (Scorecard Meetings)
 Committee analyzes the global central bank policies and rate decisions
15

Fixed Income Committee (Scorecard Meetings)
 Committee observes asset swap spreads, breakeven inflations and yield curve structure.
16

17

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 Option Structure Research
Equity Universe
 G-7 Equity Indices
 Emerging Countries
Equity Indices
FX Universe
 BRIC FX
 G-7 FX
 TL FX
Prop Indices
 Long Only Asset Basket
 Vol Controlled Indices
 Fund Linked Indices
Execution
Commodities
 Brent , Gold
 Industrial Metals
Fixed Income
Portfolio
 Government Bonds
 Corporate Bonds
18

IInvestment Process
19

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.
20

Exotic Option Structure Examples:
Trade Date:
Final Valuation Date:
12/09/2012
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.
21

Exotic Option Structure Examples:
Trade Date:
Final Valuation Date:
Underlying:
30/04/2012
15/05/2013
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.
22

Exotic Option Structure Examples:
Trade Date:
Final Valuation Date:
Underlying:
18/10/2012
15/10/2013
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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