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FEDERATION OF EURO-ASIAN STOCK EXCHANGESANNUAL REPORT JUNE 2010Turkish Asset Management market reachedTL 40.1 billion, realizing 30.6% growth in 2009.Garanti Asset Management’s AUM size grewby 34.0% to TL 6.3 billion, increasing marketshare to 15.8% from 15.4% in the sameperiod.While total size of mutual funds nominallyincreased by 27.0% and rise to TL 30.1 billion,Garanti reached TL 4.5 billion by 29.8%increase in 2009.Individual pension funds have notched upstrong growth in 2009. Total volume of fundscollected in the Individual Pension System(IPS) increased by 42% year-on-year toTL 9.1 billion (from TRY 6.4 billion in 2008).In the same period, the number of IndividualPension System investors rose from 1,745,354to 1,991,000.Garanti Asset Management maintained itsgrowth in pension funds and reached TL 1.30billion size with 14.3% market share in 2009.As the new legislation concerning PensionSystem took effect, the expectation of atransfer of savings kept at foundations andfunds to the individual pension system andarrangements regarding vesting conditionswill stimulate the corporate market, whilecontributing to the minimization of the crisisrelatednegative impacts. This is expected tostimulate the growth trend.Garanti Asset Management’s business volumewas realized as TRY 456 million in 2009,commanding a market share of 14,2% inDiscretionary Asset Management.The Company’s proactive marketing activitiesand consistently high levels of customersatisfaction kept Garanti Asset Managementeffective in the management of individual andcorporate private portfolios. By the end of2009, a total of 36 individual customers and18 corporate customers were using GarantiAsset Management’s private assetmanagement services.We would define the forthcoming period, withthe economic recovery set to get underwayafter 2010, as a period of improvement. In thisperiod, investors swiftly heading to collectiveinvestment instruments along with the falls weexpect in interest rates in particular, in additionto the sector’s strengthening infrastructure, toset the stage for strong growth for our sectorand Garanti Asset Management.In the upcoming period, Garanti AssetManagement will demonstrate maximum effortto take its pioneering and indispensableposition in the sector forward, thanks to itsperfect structuring, competent team andvision. We have full confidence that ourinvestors’ custom will continue to evolve intolong-term relationships.Projections indicate that the assetmanagement industry will grow rapidly in theupcoming period. As the array of financialproducts on offer increases, short-terminstruments will no longer be attractive andsignificant changes will take place in investors’preferences and behavior as the Turkishcapital markets develop.In line with its target of being among the first 3participants of the sector on the basis of• performance• volume• profitabilityGaranti Asset Management is committed tobeing the service provider to benefit most fromthe prospective economic recovery and periodof growth from 2010, based on its corporatestructure which fully complies with modernasset management practices, as well as itssuperior abilities. Garanti Asset Management,which works to the competition benchmarkbuilt within capital markets in order to produceever growing value to all of its stakeholders,will continue to manage change and ensure asustainable performance.Although the growth rate of Turkish investmentfunds market slowed down slightly by therecent financial crisis, it hasn’t been affectedas dramatically as developed countries. Owingto the relatively high yields in treasury bills andhigh interest rates in Turkish money market,Turkish investors preferred time deposits andfixed income products over more riskier assetclasses such as equities and structuredproducts. Alternative investment instrumentsshowed a slower progress due to thispersistent high interest rate environment.However, together with the real interest ratescoming down, crowding-out effect of theTurkish treasury has been diminishing over themarkets and investors’ risk perception hasbegun to change in favor of more riskier assetclasses. Investment fund industry and newinvestment instruments are expected to getmore attention in the forthcoming period.Moreover, with the growth in the market anddiversification in the investment instruments inTurkey, it’s also been expected that Turkishasset management companies will start toexpand abroad. The recent position of theEuropean fund market is considered as anopportunity for the Turkish companies.GARANTI ASSET MANAGEMENT TOTAL AUM(US$ millions)4,5004,0003,5003,0002,5002,0001,5001,00050002000 2003 2006 2007 2008 2009FACTS AND FIGURESDate of Establishment June 5th, 1997Ownership Structure Garanti Bank 100%Total Assets Under Management (AUM) US$4.2 billion #3Mutual Funds US$3.0 billion #3Pension Funds US$900 million #4Discretionary Asset Management US$304 million #4CONTACT INFORMATIONContact Name Gur Cagdas Tel. +90 212 381 31 00 E-mail gcagdas@garanti.com.tr Website www.garantiassetmanagement.comPAGE 39