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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2007
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
8 September 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 index,
sector, style and commodity Exchange Traded
Funds 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
18 June 2004.
With an innovative strategy, the Company’s
most important project in 2004 was 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 a 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 the Takasbank
system.
CONTACT INFORMATION
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 consists
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.
The Turkish Capital Market is heavily dominated
by financial sector stocks. Financial sector
companies weigh 40% 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 24% in the last five
years. ISE Industrials Index returned only 246%
in YTL terms while ISE Financial Index soared
304% during the same period. For these
reasons, NFIST was launched by Finans
Portfoy, 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.
SMIST, the first style Exchange Traded Fund,
followed NFIST in August 2006. SMIST offers
institutional investors the ability to gain
exposure to top 25 Turkish Smaller Companies
stocks with single transaction. The index
components are the most liquid smaller
companies on the Istanbul Stock Exchange.
SMIST shares are priced continuously during
the day and intraday NAV is disseminated by
the fund manager every 15 seconds during
trading hours of the ISE SMIST offers
diversification, eliminating the single stock risk
and makes liquidity and company risk
manageable.
GOLDIST, launched in September 2006, was
another brand-new product for the Turkish
investment community, further illustrating Finans
Portfoy’s innovative structure and granting a
supreme place in the competition. GOLDIST
allows investors to invest in bullion Gold by
grams, offering direct exposure to the
performance of Gold at the lowest cost; a
unique characteristic compared to the other
gold related products in the country.
FBIST which in on the way to be listed on the
Istanbul Stock Exchange in the coming months,
will also be the first fixed income exchange
traded fund in Turkey. FBIST enables investors
to get exposure to the changes in interest rates
in an efficient and simple way.
Quant Fund, with the application of the
proprietary computer model, was launched
in December 2006 and is the first quantitative
fund in Turkey. Quant fund makes its trades
based on the recommendations of the model,
eliminating the human factor at all. As the
computer model practically makes all the
decisions, the fund offers investors the
complete risk management, objective analysis,
elimination of human-based errors, and
thorough risk-return analysis. Also, examination
of a much larger universe of stocks, lower
expense ratio than those of comparable actively
managed funds, and superior risk control are
among the other obvious advantages of the
fund.
Finans Asset Management aims to improve
its performance through new strategies,
increase its market share through new
products, maintain growth in Discretionary
Portfolio Management, and include new mutual
funds covering the entire risk preferences of
investors while increasing its product mix
through new Exchange Traded Funds.
Contact Name Mr. C. Ozgur Guneri E-mail ozgurg@finansportfoy.com Website www.finansportfoy.com
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