Company Presentation. Since Its Establishment. February ISBANK Subsidiary

Transcription

1 Company Presentation February 2015 Turkey s Asset Manager Since Its Establishment ISBANK Subsidiary

2 ABOUT İŞ ASSET MANAGEMENT 02 INVESTMENT PHILOSOPHY AND INVESTMENT PROCESS 13 1

3 İş Asset the Leading Asset Management Company in Turkey İş Asset is Turkey s leading asset management company. İş Asset has a great deal of know how on Turkey s capital markets. Managing many institutional portfolios that correspond to various different risk categories hence; require the expert management of fixed income, equity, derivatives and other various assets. 2

4 About İş Asset Management İş Asset Management was established in October 2000 by İşbank to provide asset management services and investment advisory services to national and international institutional investors. İş Asset Management s experienced team of specialists have the heritage of İşbank s mutual fund management experience since İş Asset Management is the sole manager of 25 İşbank mutual funds 22 Anadolu Hayat Emeklilik Pension Funds Institutional portfolios via customized solutions and discretionary mandates. We aim to offer the highest standard of portfolio management services through tailor-made portfolio solutions. 3

5 İş Asset Management Shareholder Structure İş Asset Management s shareholders are well-known financial companies that are each considered as a pioneer in their own fields. İşAsset Management Shareholders Structure İşInvestment Securities Shareholder Structure İş Bank İş Bank 65.7% 65.7% Other İş Bank Other İşBank Companies Companies 6.4% 5.0% Free Float Free Float 27.9% 29.3% 4

6 About Our Main Shareholder: İş Investment Sec. Corporate Finance Investment Advisory Brokerage & Trading Research Public offerings, M&A s, financial partnerships, project financing and consultancy services. Investors have access to national and international capital markets and products by virtue of the Investment Advisor. Highly active in other emerging equity and fixed income markets as well as major international markets serving both domestic and international clients. İşInvestment s Research Analysts analyze the information influencing currency and capital markets, interpret and produce reports. İş Investment was established in 1996 as a subsidiary of Isbank. İş Investment has the highest number of investors, is the biggest brokerage house and has handled the majority of public offerings. İş Investment s National Long-term Credit Rating is AAA by Fitch Ratings. İş Investment is the only investment house traded on the ISE is also the only investment company with a credit rating. 5

7 The Largest Private Bank of Turkey-İşbank As of 30/09/2014 Total Assets billion USD Shareholder s Equity 11.7 billion USD İşbank is one of the pioneer institutions in Turkish banking sector and one of the leading banks in the world. İşbank, is one of the Turkish companies ranking among the top 500 in Forbes magazine s list. ranked 103rd in July 2010 issue of The Banker magazine s list of Top 1000 World Banks according to its consolidated financial statements and owner s equity. ranked 91st in 2009 in the list of Top 500 World Banking Brands according to its brand value and gotaa-asbrandscore. 6

8 Our Activities Institutional Asset Management İş Asset Management provides discretionary asset management services to domestic and foreign institutional investors. Tailor Made Solutions Discreationary Mandate Mutual& Pension Funds Investment Advisory Under the scope of investment advisory services, İşAsset Management providesits customers with specially designed portfolio management strategies. 7

9 Tailor Made Solutions Private Asset Management based on Tailor Made Solutions Client Base Solid Investment Process Alternative Investment Products Departments Is Asset offers client specific and customized investment solutions in line with the clients risk/return preferences Institutional investors and high net worth individuals requiring customized asset management services to reach their investment objectives Is Asset s t expertise is based on a solid investment process and the ability to understand unique dynamics of investing in Turkey In line with diverse client needs Is Asset offers alternative products in order to create return opportunities 8

10 Client Base Mutual Funds Pension Funds International Funds Turkisfund(SICAV) Fund Investment Trusts Insurance Companies Reinsurance Companies High Net Worth Individuals Foundations Retirement Funds Professional Chambers Associations Trade and Labor Unions Publicly-Traded Companies Other Institutional Investors 9

11 Assets Under Our Management (31/12/2014) Total Assets Under Our Management 7.6 billion USD Mutual Funds 3.3 billion USD Pension Funds 2.9 billion USD Private Asset Management 1.1 billion USD Alternative Investment Products 317 million USD UCITS Funds Turkisfund SICAV 51 million USD 23.3% 18.8% 19.1% Market Share Market Share Market Share Mutual Funds Pension Funds Institutional Clients Funds SICAV Funds 10

12 The Market Shares of Asset Management Companies (As of 31/12/2014) Source: Capital Markets Board 11

13 ABOUT İŞ ASSET MANAGEMENT 02 INVESTMENT PHILOSOPHY AND INVESTMENT PROCESS 13 12

14 Investment Process - Decision Making Bodies Research Department Backs portfolio managers investment decisions Forms the preliminary investable equity pool by thoroughly scrutinizing the investment universe and submits it to the investment committee s approval Investment Committee The investment committee is formed by the CEO, CIO, Chief Economist and Portfolio Management department heads Determines the strategic asset allocation and describe investable equity pool Portfolio Managers Conducts tactical Asset Allocation and Portfolio Construction Feeds the investment Committe with its investment strategies 13

15 Investment Decision Process Investment Universe 1 Macroeconomic Forecasts Top-down Analysis - Global outlook - Geopolitic factors - Inflation, Growth - Global&local market trends Stock Selection Process 2 Macro Assesment 3 Stock Selection Pool of investable equities Bottom-up analysis Sector focus Investment themes Company valuation Corporate governance Portfolio Construction 4 Construction Execution Trade Performance & Risks Performance Measurement and attribution Risk Management 14

16 Investment Process - Research Dept. Macroeconomic Forecasts Economic and econometric analysis of core parameters Forecasts and Asset Valuation Causality and co-integration analysis Macroeconomic Report Suggestions on asset classes Contribution to Investment Decision Process Member of the Investment Committee 15

17 Investment Process - Research Output Global Economy Macro Outlook Turkish Economy In-House Research (designed for our portfolio managers), mostly on US and EU economy Academic Research peer-reviewed academic journals, Fed staff papers, international organizations reports Independent Macroeconomic Research paid services from leading houses Macro Outlook In-House Research Daily basis«last Minute Report(s)» Weekly basis«weekly Report» and «Strategy Report» Monthly basis«monthly Review(s)» Brokage Houses Research Asset Allocation Advice for (weekly) Investment Committee 16

18 Investment Process -Stock Selection Stock Selection Qualitative Research Company Valuation Sector Positioning(Conferences) Business Exposure(Sell-Side Analyst Discussions) Management Quality(Company Visits) Stock Selection Bottom-Up Analysis (Equity Screen Model- Alpha Drivers, Multiples, Dividend Yields, Balance Sheet Metrics, DCF) Investable Equity Pool 17

19 Investment Process - Investable Equity Pool Determined by Investment Committee based on macro&micro analysis provided by the Research Dept. Attractive multiples compared to their peers Strong and healthy balance sheet Growth-Value Investing, Positive news flow, High profitability Periodic performance of each stock in I.E.P monitored by the Research Dept. 18

20 Investment Process Portfolio Construction The Portfolio Manager s Role Views on Markets Asset Allocation Views on Inflation, Rates Growth Valuation based on -Cash flows -Multiples -Technicals Security Selection Local expertise Trading Costs Execution Trading Speed

21 Investment Process - Principles & Restrictions Sell discipline: A Continous and Dynamic Approach Market price exceeds target price Assumptions used in determining fair value change More compelling investment opportunities Deterioration in capital structure or earnings 20

22 Risk Management Organizational Structure Work Flow Reporting Process Risk Reports 21

23 Risk Management Organizational Structure Board of The Directors Risk Committee Board of The Directors Risk Responsible Member Risk Management Department CEO CRO Risk Management Vice President CRO 22

24 Risk Management Work Flow There are three basic steps of risk management process: Identify risk factors & Set quarterly basis updated risk limits Measure & Report regularly Compare risk measurements against the limits 23

25 Risk Management Work Flow In case of limit violations: Inform Portfolio Managers, CIO and The Risk Committee Actions are taken by top management within two days High volatility periods limits are updated by Risk Management 24

26 Risk Management Reporting Process Data Import From Portfolio Management Software (PM1) Local&Global Data Vendors (Bloomberg, Reuters, Rasyonet, Matrix) Analysis With in-house tools Risk Management Software (MSCI BarraOne) Reports Risk Committee Portfolio Managers 25

27 Risk Management Reports Daily VaR Reports (ex-ante risk), Daily Tracking Errors Weekly fund performances reports (ex-post risk) Weekly risk- return charts Monthly liquidity reports calculates for assets and managed funds Quarterly stress tests and scenario analysis & risk limit updates 26

28 Our Experienced Team Is Asset Management, firmly believes in the value of knowledge and experience. supports its qualified human resources with modern and strong human resources policies. provides its employees with opportunities to take part in training programs in Turkey and abroad so as to hone their professional competencies and keep them current. has 57 employees. Has 1 employee with an associate professor title, 30 employess with graduate degree, 22 employees with undergraduate degree. 27

29 Is Asset Management Professionals Tevfik Eraslan CEO 19 Years Graduate Degree in Economics, Istanbul University Is Asset Management, Kentbank, TEB Elif Cengiz Executive Vice President 21 Years Undergraduate Degree in Economics, Istanbul University Is Asset Management, IS Investment, Isbank Ali Emrah Yücel Executive Vice President 13 Years MBA, University of West Georgia Bs in Mathematics, Bogazici University Is Asset Management, IS Investment, Koc Investment Ahmet Ferdi Bağoğlu Audit Commitee Deputy Head 22 Years Undergraduate Degree in Economics, Istanbul University Is Asset Management, Camis Securities, Isbank Aylin Erdem CFA, Manager - Mutual Funds 20 Years Undergraduate Degree in Economics, Middle East Technical University Is Asset Management, IS Investment, Oyak Asset Management Neslihan Öksüz Manager - Domestic Marketing and Business Development 19 Years Undergraduate Degree in Business Administration, Bilkent University, Is Asset Management, Nurol Invetsment Bank, Korfez Bank Huseyin Gayde CFA, Manager - Pension Funds 15 Years Yeşim Gezen Manager - Operations 20 Years Mücella Topçu Manager - Accounting and Administrative Affairs 18 Years MBA, Bogazici University Bs in Business Administration, Bogazici University Is Asset Management, Ak Asset Management, Turkisfund (SICAV), Kentbank Graduate Degree in Political Science and International Relations, Bogazici University Is Asset Management, EL - IF Engineering, Alternatif Invest, Alternatif Bank, Ata Invest, Isbank Graduate Degree in Erciyes University, Economics Is Asset Management, Egebank Mehmet Horasanlı Manager - Internal Control and Performance Tracking 16 Years PhD, Istanbul University, Marmara University Mathematics, IS Asset Management Selim Kocaoğlu Manager - Alternative Investment Products 13 Years Turgut Keleş Manager - International Marketing 22 Years Erkan Ünal Manager - Research 16 Years Graduate Degree in Koc University, Bogazici University IS Asset Management, Garanti Asset Management Graduate Degree, Unıversıty of Paris X, Econometrics, WestDeutsche LB, West Merchant Bank, TEB (İstanbul), Caısse Centrale des Banques Popularies Graduate Degree in Economics, Marmara University Is Asset Management, Vakıf Asset Management, Karon Securities. Gülin Erdoğan Assistant Manager - Domestic Marketing and Business Development 13 Years Undergraduate Degree in Business Administration, University of Miami, Is Asset Management, Akbank Ali Sedat Toydemir Assistant Manager - Private Asset Management 14 Years Graduate Degree in Economics, Marmara University Is Asset Management, Vakıf Asset Management, Karon Securities. 28

30 Contact Information Marketing &Business Development Department Tel: +90 (212) Tel : +90 (212) İş Asset Management Head Office İşKuleleriKule17thFloor Levent - Istanbul Tel: +90 (212) Fax: +90 (212)

31 Past performance is not necessarily a guide to future performance and the value of investments and any income from them may fall as well as rise. Funds that invest in emerging markets may experience increased volatility and the risk to your capital may be greater. This means that investors may not get back the amount they originally invested.in addition, the value of investments may increase or decrease as a result of changes in exchange rates between currencies. 30

32 THANK YOU! ISBANK Subsidiary 31