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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 openend
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. Intraday
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 intraday
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.
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 nonfinancial
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.
CONTACT INFORMATION
Contact Name Mr. C. Ozgur Guneri E-mail ozgurg@finansportfoy.com Website www.djist.com
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