FEAS Yearbook FEAS Yearbook 2006 | Page 20

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2006 FINANS ASSET MANAGEMENT Finans Asset Management has played a pioneer role in the asset management industry in Turkey in many aspects. Finans Asset Management was established on September 8, 2000, as the 8th portfolio management company in Turkey. Having targets and services differing than its competitors, the Company manages open- end and closed-end mutual funds of FIBA Group, Discretionary Portfolios offered to private and institutional clients along with the first Exchange Traded Fund and first Sector Exchange Traded Fund in Turkey. Finans Asset Management has played a pioneer role in the asset management industry in Turkey in many aspects. The Company launched the first theme dedicated fund management concept with generic naming. Finans Asset Management also launched the first “Investor Risk Profiler” for Turkish Mutual Fund investors. Global direct exposure was also offered for Finans Asset Management investors. Finans Asset Management adopts strategies aiming at increasing its product mix with new mutual funds and investing in foreign markets, a unique feature among its competitors. Another pioneering project of the Company has been to establish the first and only asset management branch that started its operations in Ankara in June 18, 2004. With an innovative strategy, the Company’s most important project in 2004 has been the first Exchange Traded Fund of Turkey. Being one of the fastest growing asset-class globally, Exchange Traded Funds are based on tracking the performance of an underlying index or an asset mix. Sponsored by Finansbank and managed by Finans Asset Management, Dow Jones Istanbul 20 Exchange Traded Fund, was founded in accordance with highest international standards. The product is based on “Dow Jones Turkey Titans 20 Index”, which is developed and disseminated by a globally recognized index provider, Dow Jones Indexes. Dow Jones Istanbul 20 ETF allows investors to gain direct exposure to largest and most liquid 20 blue-chips listed on the Istanbul Stock Exchange. Dow Jones Istanbul 20 offers many advantages to investors. DJIST offers institutional investors the ability to gain exposure to the Turkish Capital Markets with single transaction. Dow Jones Istanbul 20 ETF has 20 components, which are the largest and most liquid names of the Istanbul Stock Exchange. DJIST fund shares can be easily acquired through the Istanbul Stock Exchange. Institutional investors can also create or redeem through Takasbank system. DJIST offers liquidity for institutional investors through creation-redemption process. Due to creation-redemption capability, DJIST volume on the Istanbul Stock Exchange does not equal to liquidity. An ETF that is based on a liquid index can facilitate good executions even if the ETF itself trades infrequently. DJIST shares are priced continuously during the day on the Istanbul Stock Exchange. Intra- day NAV is also disseminated by the fund manager every 15 seconds during trading hours of the ISE. Continuous pricing allows intra-day liquidity for investors. Efficient intra- day pricing leads to minimal deviation from Net Asset Value of the fund. DJIST offers diversification as it is consist of largest and liquid blue-chips of Turkey. Dow Jones Istanbul 20 ETF eliminates the single stock risk. DJIST makes liquidity and company risk manageable. Dow Jones Istanbul 20 ETF can either be used to diversify the entire portfolio and/or complete the investment strategy as a core holding. Investors may develop various investment strategies using Dow Jones Istanbul 20 ETF such as Core Holding, Cash Equitization, Portfolio Transitions and Completion Strategies. Finans Asset Management also launched the first sector Exchange Traded Fund in Turkey. Non-Financial Istanbul 20 (NFIST) tracks Non- Financial Istanbul 20 Index. Non-Financial Istanbul 20 ETF allows investors to gain direct exposure to top 20 industrial and service sector stocks listed on the Istanbul Stock Exchange. CONTACT INFORMATION Contact Name Mr. C. Ozgur Guneri PAGE 18 E-mail [email protected] Website www.djist.com Turkish Capital Market is heavily dominated by financial sector stocks. Financial sector companies weigh 66% of Dow Jones Istanbul 20 ETF. Foreign investors can’t take the advantage of non-financial stocks’ performance due to lower liquidity and lack of investment tools. Also, ISE Industrial Index underperformed the ISE Financial index by 44% in the last three years. ISE Industrials Index returned only 212% in YTL terms while ISE Financial Index soared 438% during the same period. For these reasons, NFIST was launched by Finans Asset Management, manager of Dow Jones Istanbul 20 ETF, the first and the only ETF in Turkey. NFIST is based on the first and the only non- financial blue chip index in Turkey. Non- Financial Istanbul 20 Index is calculated, maintained and disseminated by Dow Jones Indexes, one of the leading index providers in the world. Non-Financial Istanbul 20 Index has the same characteristics with Dow Jones Turkey Titans Index; UCITS compliance, annual review, 3-month weight adjustments, real-time dissemination. NFIST is developed in international standards and has the know-how support from American Stock Exchange, operational support from Takasbank. Finans Asset Management aims to improve its performance through new strategies, increase its market share through new products, maintain growth in Discretionary Portfolio Management, include new mutual funds covering the entire risk preferences of investors while increasing its product mix through new Exchange Traded Funds. The IPO of Turkish Smaller Companies Istanbul 25 Exchange Traded Fund is planned for 2nd Quarter of 2006, supports this company vision. Finans Asset Management plans to launch the first commodity Exchange Traded Fund in Turkey within the next two months. Istanbul Gold ETF will be listed on the Istanbul Stock Exchange and will allow investors to participate in the performance of Gold. Finans Asset Management constantly studies global alternatives, changing investor patterns and trends to provide these products to Turkish investors, if applicable.