TEB Asset Management
Established in 1999, TEB Asset Management’s fundamental objective is to determine the investment vehicle compositions of investment portfolios based on the risk profiles of their individual and corporate clients and to manage those portfolios accordingly with optimum benefit. Through its wide product range, the Company comes up with recommendations which create added value in line with its clients’ risk profile and return-related expectations.
TEB Asset Management has been providing asset management services since June 2004. The goal of asset management services is to determine an investment model which provides perfect balance between risks and returns. The Company also began to offer corporate asset management services in 2005.
Having entered a synergetic collaboration with its partner, BNP Paribas Asset Management, a leading name in the asset management business in the Eurozone, TEB Asset Management is determined to press forward quickly towards its goal of becoming a global player.
Attaching great importance to strategic partnerships, TEB Asset Management also offers management services for the mutual funds of Millennium Bank, one of Europe’s leading banks, which is owned by the Portuguese BCP International Bank. In addition, TEB Asset Management, which is a part of an innovative culture, is one of the leading asset management companies which established various versions of Capital Guarantee funds, hedge funds and foreign securities funds like the BRIC fund, which includes various stocks traded on the stock exchanges of Brazil, Russia, India and China. Moreover, by ensuring distribution of funds under its management through other channels, the Company has broken new ground in Turkey.
TEB Asset Management’s Stock Division enjoyed a successful year in 2010, as in 2009, and exceeded the projected returns on all funds under its management and the expected return ratios. In 2010, the Division pioneered the formation of hybrid funds, which minimize the stock market risk through future contracts, and significantly increased the value of assets under the management of TEB Asset Management, as these funds yielded returns in excess of their benchmark levels. By adopting a similar strategy, the Division began to manage a Hedge Fund, which is planned to be offered to investors in 2011.
Through the end of 2010, the Company funds performed broadly in line with their benchmarks, and as a result of successful investment strategies applied throughout the year, TEB’s Bond / Bill funds were among the highest-return yielding funds in the sector in 2010.
Founded by BNP Paribas Investment Partners in 2006, Parvest, which receives consultancy services from TEB Asset Management, was granted the “Best Turkish Stock Fund” award in 2010 among European funds, by Lipper, a fund rating agency that evaluates Turkish funds.
As of September 30, 2010, the mutual fund industry’s assets under management had increased by 1.94% in value to reach TRY 30.4 billion (US$ 20.9 billion). “Type B” (bond & bill / money-market) funds totaled TRY 29.2 billion in value, while “Type A” (equity) funds had combined resources amounting to around TRY 1.2 billion. During the same period, the total value of the mutual funds under the management of TEB Asset Management had declined by 1% to TRY 1.162 billion (December 31st, 2009: TRY 1.176 billion), while the Company’s market share slipped slightly from 3.94% at the end of 2009 to 3.85% at the end of September 2010.
At the end of September 2010, TEB Asset Management was managing a total of 31 portfolios consisting of 23 TEB, 5 TEB Investment and 3 Millennium Bank mutual funds. At the same time the Company was managing two pension funds for Anadolu Hayat Emeklilik while also providing portfolio management services for its corporate and individual customers. The total value of the non-pension fund assets under the Company’s management was TRY 1.308 billion, while the value of the two Anadolu Hayat Emeklilik funds amounted to TRY 30 million.
Founded in 1997, TEB Leasing offers leasing services to corporate and individual investors in a rapidly growing national economy.
The rise in investments in line with the growth of the economy in 2010 set the stage for a return to growth for the leasing sector, which had contracted during the last 2 years. In 2010, the leasing market expanded by 54% to reach a total size of US$ 3.2 billion. TEB Leasing’s new business volume, on the other hand, grew by nearly twice as rapidly as the volume in the sector as a whole, to reach € 130 million with its market share rising from 3.2% to 4.7%. According to figures compiled by the Financial Leasing Association, TEB, which had been ranked 11th in the sector at the end of 2009, rose to 7th place in 2010.
TEB Leasing’s total assets amounted to TRY 444,241,000 in 2010. Leasing receivables, the most important item in its assets, rose to TRY 368,917,000. Its shareholders’ equity, which is the most important indicator of sound growth, increased by 10% year-on-year to TRY 106,795,000.
In 2010, cross-sales were one of the primary areas which the Company focused on. Thanks to various promotions aimed at TEB employees, TEB Leasing was deemed worthy of the Most Innovative and Creative Group Company Award in 2010 TEB Group Innovation Awards.
The proportion of TEB Leasing’s total transaction volume that was performed through TEB branches increased from 83% in 2009 to 91% in 2010.
Campaigns conducted jointly with the Bank, such as Allstar 2010, TechnoLease, SummerLease and LeasingPlayoffs ensured that public interest in leasing products remained strong.
Within the framework of efforts associated with the merger and restructuring of Fortis Bank under TEB, a share sale contracted dated July 12th, 2010 was signed with respect to the transfer of 90.01% of shares representing the capital of TEB Leasing to Fortis Finansal Kiralama A.Ş. (Fortis Leasing), a subsidiary of BNP Paribas, which is one of the indirect shareholders of our Bank, for a price of TRY 113,345,000.
Established in 1996, TEB Investment’s primary field of activity is to engage in capital market operations in accordance with the provisions set forth in the Capital Markets Law no. 2499 and respective legislation. Within this framework, the Company offers its customers services such as brokerage in sale and purchase of previously issued capital market instruments, sale and purchase of capital market instruments through repurchase-resale commitments, investment consultancy, client asset management, and sale on credit, short selling and borrowing and lending transactions of capital market instruments, as well as brokerage in sale and purchase of derivatives both in Turkey and abroad, and related custody services.
TEB Investment reaches its domestic and foreign customers through a wide array of products and services and via various service channels which were customized in accordance with client profiles. Various channels, which were customized in accordance with customer-specific solutions, such as investment services (i.e. stocks, mutual funds, bonds-bills and repo, corporate finance, research, international capital markets, investment centers and internet branch), were gathered under the roof of TEB Investment.
TEB Investment’s Position in the Sector
TEB Investment ranked 9th with a 3.20% market share of ISE equity trading volume as of November 2010, accounting for a total trading volume of TRY 35,997 million. As of the same date, the Company ranked 21st with a 1.35% market share of Turkish Derivatives Exchange trading volume, accounting for a total trading volume of TRY 10,546 million.
TEB Investment’s competitive advantages played a significant role in achieving healthy results:
The Economy Bank N.V.
The Economy Bank NV (TEB NV) was founded in 1998 in the Netherlands. TEB NV’s mission is to be one of the most active and service-focused players in the Turkish and European financial markets as the TEB Group’s specialized service provider in the international trade & commodity finance business line.
In 2005, TEB NV became a member of the BNP Paribas Group, which is one of the biggest financial institutions in the world. This development brought a significant contribution to TEB NV’s operations and TEB NV began to offer services in 84 countries around the world. Benefiting from BNP Paribas’ credit-risk analysis systems, the Bank is focused on maintaining its growth trend with an effective business model, in which trade and commodity finance products are held separately.
TEB NV has gained prominence in the sector with its
TEB NV’s performance in 2010
TEB NV raised its pretax profit by 13% year-on-year to € 13.6 million in 2010. Among the most important factors behind this success were the systematic structuring of assets and the Bank’s effective risk management policies.
TEB NV attached great importance to risk management throughout the year and adopted credit lending approaches that take risks into account. The Bank’s net interest revenues increased to € 24.9 million in 2010, while its net commission and fee revenues reached to € 9.7 million. The Bank’s loan provisions had become € 1.8 million by the end of 2010. TEB NV’s net profit after tax was realized as € 7.9 million, with a return on equity of 9.45%.
TEB NV increased the total trade transaction volume by 41% from € 1.2 million in 2009 to € 1.7 million in 2010. The cost/return ratio slipped slightly by 3.5 percentage points from 45.9% in 2009 to 42.4% in 2010. TEB NV succeeded in keeping its liquidity ratio at a satisfactory level, with a total of € 105 million in liquid deposits at the end of year, thanks to legal requirements and the Bank’s own liquidity policies.
This achievement proved that even under challenging market conditions TEB NV can obtain positive results through effective strategies and policies,. Differentiating itself in its sector with its experienced managers and robust performance, TEB NV is determined to achieve successful results in 2011, as well.
Chosen once again as the “Best Export Factoring Company” by FCI in 2010
TEB Factoring was founded in September 1997 as a subsidiary of TEB to offer factoring services in Turkey and abroad. Within the framework of the principles of the TEB Group, the Company aims to offer qualified services which encompass all aspects of factoring to companies of various sizes in different sectors by recognizing customers closely and determining their specific needs directly.
Since its foundation, TEB Factoring has primarily aimed to make all types of the factoring instrument available and to expand the market. The Company has placed priority on quality in service in order to ensure that factoring is preferred over other instruments particularly in line with the target of achieving new clients, and being one step ahead of its peers.
As one of the 3 biggest companies in the sector, TEB Factoring continued to serve corporate and commercial firms and SMEs and increase its business volume in 2010 with various export, import and domestic factoring products. Despite the negative impacts of the crisis, the Company had already exceeded its annual target by 125% by the end of November..
TEB Factoring, which boasts the highest profitability in the sector, recorded 83% year-on-year increase in its profit in the first 11 months of 2010, while obtaining a return on equity of 34.03% and return on assets of 1.05%. The Company achieved some of the highest levels of productivity in the sector.
TEB Factoring increased its total number of clients to nearly 7,500 in 2010. The Company completed the year 2010 with 3,000 active customers, 6 branches and 82 employees. As far as export factoring transaction volume as of December 31st, 2010 is concerned, the Company ranked 3rd by closing the year with nearly US$ 1 billion transaction volume.
The Company was awarded the “Best Export Factoring Company” in 2010 by the members of Factors Chain International (FCI) which is the largest and the most important factoring organization in the world. TEB Factoring won this prestigious award 2 years in a row, while Mr. Çağatay Baydar, the Company’s CEO, was again elected as the FCI Vice Chairman.