Individual Pension System Progress Report 2013

Transcription

1 Individual Pension System Progress Report 213

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3 Individual Pension System Progress Report 213 Electronic version of this document and reference data of selected statistics are available at Press Date: 2 May 214

4 Contents Contents Foreword 7 1. Individual Pension System Data General Overview Contracts Participants Contributions Pensioners Intermediaries and e-beas State Contribution Pension Plans Pension Mutual Funds and State Contribution Funds Worldwide Pension Funds Pension Mutual Funds and Securities Mutual Funds in Turkey Asset Allocation of Pension Mutual Funds Total Net Asset Values and Average Returns of Fund Groups Returns of Pension Mutual Funds Risk Analysis of Pension Mutual Funds State Contribution Funds Management Fees of Pension Mutual Funds and State Contribution Funds Pension Mutual Funds and State Contribution Data Realizations in 213, Sectoral Expectations for Realizations in Sectoral Expectations for Publications in the Individual Pension System Amendments in the Legal Framework 96 2

5 Tables and Charts Tables and Charts Distribution of Contributions according to Contracts Establishment Reason (TL) 1 Development of Number of Contracts and Amount of Contributions, in Comparison of Total Invested Amount and Accumulations (TL) 11 Fund Amount of Participants of the Pension Companies (TL) 11 Distribution of Payments 12 Distribution of Contracts in Force and Terminated 12 Distribution of Contracts according to their Types 12 Distribution of Contracts according to Regions 13 Distribution of Terminated Contracts according to Reason 13 New Contract Establishments in Distribution of Contracts in Force and Terminated 14 Distribution of Contracts according to Contracts Age 14 Termination Ratio of Contracts according to the Month of Enforcement (%) 15 Distribution of Contracts Terminated Voluntarily according to their Age at Termination 15 Distribution of Participants as Existing or New Participant 16 Distribution of Accumulations according to Contracts Age (TL) 16 Distribution of Contracts Transferred to another Pension Company 17 Ratio of Contracts That Withdrew in the Grace Period 17 Distribution of Contracts Transferred to Another Pension Company 17 Accumulations of Participants according to Gender and Ages 18 Distribution of Accumulations according to Participants Profession (%) 18 Participants Fund Preferences per Fund Group 19 Participants Fund Preferences according to Contract Types per Fund Group 19 Preferred Distribution of Contracts by Fund Group Proportions 2 Distribution of Participants according to Regions 2 Participants Average Monthly Regular Contribution Planned to be Paid according to Age Groups 21 Distribution of New Participants according to Age Groups 21 Accumulations of Participants according to Ages 22 Distribution of Terminated Contracts according to Participants Age Groups 22 Vesting Years 23 Distribution of Contracts according to Payment Period 23 Opt Outs in the Establishment Year 23 Distribution of Participants and Accumulations according to Income Levels (%) 24 Participants Entrance Age to the System 24 Distribution of Participants according to Number of Contracts Owned (%) 25 Distribution of Participants according to Contract Types (%) 25 Distribution of Participants and Accumulations of Participants according to Gender and Contract Types (%) 25 Distribution of Participants Ages according to Pension Companies 26 Ratio of Participants Who Reentered the System After Voluntary Opt Out 26 Ratio of Participants to the Population according to Provinces (%) 27 Growth Rate of Number of Participants according to Provinces (%) 27 Distribution of Contributions according to Distribution and Marketing Channel (%) 28 Change in Average of Regular Contributions Paid in a Year (TL) 28 Change in Regular Contribution Payment 29 Cumulative Change in Contributions according to Contribution Type 29 Change in Contributions Paid for Contracts in Force according to Years 3 Distribution of Contributions according to Marketing Channel and Payment Period (%) 3 Accumulations and Number of Participants according to Accumulation Amount Intervals 31 Accumulations and Number of Participants according to Participants Completed Month in IPS 31 Average Monthly Regular Contribution according to Provinces 32 Distribution of Contributions according to Provinces (%) 32 Average Monthly Regular Contribution of Participants according to Gender 33 Average Monthly Regular Contribution according to Geographical Regions 33 3

6 Tables and Charts Average Monthly Regular Contribution according to Payment Period 34 Average Monthly Regular Contribution according to Distribution Channel 34 Contributions according to Contract Types 35 Distribution of Contributions according to Average Monthly Regular Contribution Intervals 35 Ratio of Contributions and Contracts according to Monthly Paid Regular Contribution Intervals 36 Distribution of Contracts Terminated Voluntarily according to Contracts Types 36 Contracts Terminated Voluntarily according to Contracts Age and Average Monthly Regular Contribution 37 Distribution of Contributions according to Payment Instrument 37 Cumulative Change in Fees according to Fee Types 38 Change in Administrative Expenses Fee Ratio (%) 38 Income Withholding Tax 39 Retirement in IPS 4 Change in Number of Retired Participants 41 Development of Participants according to Date they can Retire 41 Contributions and Net Returns of Retired Participants (TL) 42 Retired Participants according to Retirement Payment Intervals 42 Distribution of Retired Participants according to Time Spent in the Individual Pension System 43 Intermediaries according to the Status of License 44 Distribution of Intermediaries according to Regions 44 Contracts according to Distribution Channel 45 Distribution of Intermediaries according to Distribution Channel (%) 45 Ratio of Contributions, Intermediaries, Contracts and Terminated Contracts according to Age Groups of Intermediaries (%) 45 Ratio of Contracts and Contributions according to Distribution Channel (%) 46 Ratio of Contracts and Contributions according to Marketing Channel (%) 46 Distribution of e-beas Takers according to Distribution Channel 47 Distribution of e-beas Takers Grades Intervals according to Distribution Channel (%) 47 The Progress of e-beas Takers Success Ratio 48 Distribution of e-beas Takers and Successful Ones according to Age Groups 48 The Success Ratio of e-beas Takers according to Gender 49 Distribution of Intermediaries according to Gender and Ages 49 Distribution of State Contribution Paid according to Contract Types 5 Distribution Ratio of State Contribution Paid to Participants according to Entrance Year 5 Distribution Ratio of State Contribution Paid according to Gender 51 Distribution Ratio of State Contribution Paid according to Age Groups 51 Average Amount of State Contribution Paid to Participants according to Gender and Age Groups 51 Top 2 Provinces Where The Highest State Contribution Paid 52 Average Amount of State Contribution Paid per Participant according to Top 2 Provinces 52 Distributions of the Total Amount of State Contribution Funds according to Accumulation Intervals of State Contribution 53 Distribution of Total Amount of State Contribution Funds to Participants 53 Pension Plans 54 Importance of Pension Funds Relative to the Size of the Economy in Selected OECD Countries, Geographical Distribution of Pension Fund Assets in OECD Countries (%) 6 Pension Funds Real Net Rate of Investment Returns in Selected OECD Countries 61 Pension Fund Nominal and Real 5 Year (geometric) Average Annual Returns in Selected OECD Countries over Consolidated Data of Mutual Funds as of December 31, Variation of Pension Mutual Funds Net Asset Values 62 Net Asset Value of Pension Mutual Funds according to Fund Groups and Their Growth Rate in Average Term in Pension Mutual Funds and Securities Mutual Funds 63 Change in Total Assets of Pension Mutual Funds and Securities Mutual Funds 64 Consolidated Asset Allocation of Pension Mutual Funds (%) 64 Asset Allocation of Flexible Funds (%) 65 Asset Allocation of Pension Mutual Funds in 213 according to Founder (%) 65 Total Net Asset Values and Average Returns of Fund Groups 66 4

7 Tables and Charts Change of Net Asset Values of Fund Groups by Years (Increases and Decreases in Annual) 66 Returns according to Fund Groups and Their Benchmarks in Net Asset Values of Pension Mutual Funds according to Founders and Fund Groups 67 Net Asset Values of Pension Mutual Funds according to Founder 68 Net Asset Values of Pension Mutual Funds according to Founder and Their Growth Rate in Pension Mutual Funds Performance Analysis according to Benchmark 69 Ratio of State Contribution Fund Group Return to Other IPS Fund Group Returns 85 Management Fees of Pension Mutual Funds and State Contribution Funds 85 Development of Average Monthly Fund Management Fee Ratios according to Fund Groups 86 Consolidated Targets and Realizations of Pension Companies for Expectations Regarding Number of Participants, Amount of Contributions and Accumulations for the Year Returns of Funds and Benchmarks 71 Data of Flexible Pension Mutual Funds 72 Returns of Pension Mutual Funds in 213 according to Fund Groups and Founder 74 The Company, Fund Group and Sectoral 12 Month Returns (Fund Group and Fund Group Benchmark Returns) 74 Rate of Annual Returns of Pension Mutual Fund Groups by Years 75 Rate of Annual Real Returns of Pension Mutual Fund Groups by Years 75 Fund Groups and Alternative Investment Vehicles Returns 76 Returns of Fund Groups and Alternative Investment Vehicles in Index Change Ratio of Fund Group and Alternative Investment Vehicles 77 Based on the Fund Group, 213 Annual Returns of Portfolio Management Companies 77 Top 2 Pension Mutual Funds according to Sharpe Ratios 78 Markets Indexes Used for Fund Groups 79 Pension Mutual Funds with Positive Alpha Coefficient (Except International Funds) 8 State Contribution Funds Data 81 Total Net Asset Values of State Contribution Funds according to Founder 82 The Basis of the Portfolio Limitations of State Contribution Funds 82 Asset Allocation of State Contribution Funds according to Founder(%) 83 State Contribution Return Index 83 Return Index of State Contribution Funds according to Founder and Fund 84 Index Change of Fund Groups 84 5

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9 Foreword Foreword 213 was a year of introduction of new, revolutionary regulatory arrangements to the individual pension system, which were developed during 212. Leaving behind a decade, the system was fortified with the 25% state contribution incentive, put into force from January 1, 213, which marks a significant milestone in respect of the growth of individual pension funds. This incentive has meant one million new participants entering the system in 213, which figure represents a two-fold increase relative to the preceding year. Furthermore, the average contribution paid by new participants joining in the system rose by around 3%. The system achieved a fund value of over 25 billion Turkish Liras and approximately 4.2 million participants as of the end of 213, and we gladly follow up its contribution to the development of our economy and capital markets, while increasing the pension savings. In addition to the reforms introduced and the high growth level achieved by the system, 213 was an important year also in regard to the fact that those who entered the system ten years ago and has turned the age of 56 were entitled to pension. As of the end of 213, number of participants entitled to pension was 7,577. Now gaining its own pensioners, the system is observed to yield noteworthy returns to its participants during a tenyear period. Efforts will be made to further increase this contribution with additional regulations planned in the near future. For the continued acceleration of the new growth rate attained in 213, the strong public support will be maintained in the future, as it always has been. However, it is of great importance that concerted efforts of pension companies, portfolio management companies and other stakeholders, besides the public, should be continued to ensure that confidence in the system is increased and the growth is sustained in an efficient manner. In this perspective, potential success of the regulations and efforts to be made in the near future, consequently expansion of the participation base of the individual pension system and enhancement of the provided added value will depend upon joint efforts of all parties involved, as it has been so far. I would like to take this opportunity to thank everyone who has contributed to the development of this valuable work, and hope that the Individual Pension System Annual Progress Report would be a useful source for all stakeholders. İbrahim Halil ÇANAKCI The Undersecretary of Treasury Republic of Turkey Prime Ministry The Undersecretariat of Treasury The system achieved a fund value of over 25 billion Turkish Liras and approximately 4.2 million participants as of the end of 213, and we gladly follow up its contribution to the development of our economy and capital markets, while increasing the pension savings. 7

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11 Individual Pension System Data 11.1 General Overview Contracts Participants Contributions Pensioners Intermediaries and e - BEAS State Contribution Pension Plans

12 1 - Individual Pension System Data 1.1 General Overview 213 Year-End Participants 4,153,55 Funds (TL) 25,145,718,418 Intermediaries 26,639 Pension Companies 18 As of the end of 213, 4,687,675 contracts are in force. The number of participants has grown around 33% and exceeded 4.1 million when compared to the end of the last year. At the same period the total net asset value of the funds have been increased 24% and exceeding TL 25 billion. Distribution of Contributions according to Contracts Establishment Reason (TL) G.1 New Entry to the System 21,39,467,9 97.2% Transfer of Accumulations in Life Insurance to the Individual Pension System 197,476,43.9% Transfer of Accumulations in Provident Funds to the Individual Pension System* 414,916,72 1.9% As of 213 year-end, distribution of total amount of contributions for the contracts in force is analyzed according to establishment reason of the contracts. *These include funds from associations, foundations, provident funds and other organizations with retirement provisions. Development of Number of Contracts and Amount of Contributions, in 213 G.2 Number of Contracts Total Amount of Contributions (TL Million) 5,, 23, 4,7, 22, 4,4, 21, Number 4,1, 3,8, 3,5, 3,2, 2, 19, 18, 17, TL Million 2,9, , Development of Number of Contracts and Amount of Contributions, in

13 1 - Individual Pension System Data Comparison of Total Invested Amount and Accumulations (TL) G.3 27, Accumulations of Participants (TL) Total Invested Amount (TL) 25, 23, 21, 19, 17, 15, TL Million Total amount of invested contributions after deduction of the administrative expenses fee total accumulations in 213 are compared. Amount of contributions invested (TL 21,455,9,238) until December 31, 213 reached TL 25,145,718,418 and total amount of participant s state contributions invested reached TL 1,151,765,932. (Return rate should be interpreted together with the internal rate of return on investments. Direct comparison with other investment instruments may not give accurate results.) Fund Amount of Participants of the Pension Companies (TL) G.4 Total Amount of Participants' Funds (TL Million) 5,5 5,25 5, 4,75 4,5 4,25 4, 3,75 3,5 3,25 3, 2,75 2,5 2,25 2, 1,75 1,5 1,25 1, Aegon Emeklilik ve Hayat Allianz Hayat ve Emeklilik Allianz Yaşam ve Emeklilik Anadolu Hayat Emeklilik Asya Emeklilik ve Hayat Avivasa Emeklilik ve Hayat Axa Hayat ve Emeklilik BNP Paribas Cardif Emeklilik Cigna Finans Emeklilik ve Hayat Ergo Emeklilik ve Hayat Fiba Emeklilik ve Hayat Garanti Emeklilik ve Hayat Groupama Emeklilik Halk Hayat ve Emeklilik ING Emeklilik Metlife Emeklilik ve Hayat Vakıf Emeklilik Ziraat Hayat ve Emeklilik Development of total amount of participants funds, of the pension companies, in 213. Total fund amounts of Axa Hayat ve Emeklilik A.Ş. (TL 29,413,238) and Fiba Emeklilik ve Hayat A.Ş. (TL 47,222) cannot be followed in the graph due to the small amounts. 11

14 1 - Individual Pension System Data Distribution of Payments G.5 Total Amount of Contributions Invested 21,455,9, % Entrance Fee (Paid at Entrance) 188,221,931.9% Administrative Expenses Fee 465,959, % Until the end of 213, TL 21,455,9,238 has been invested after deduction of TL 465,959,876 for administrative expenses fee from TL 21,921,86,114, the total amount collected from contracts in force. Apart from contributions, an amount of TL 188,221,931 was paid as entrance fee for contracts in force. Distribution of Contracts in Force and Terminated G.6 In Force 4,687,675 63% Terminated 2,811,146 37% Transferred to Another Pension Company 247,38 3% Merged Contracts 148,178 2% Terminated with Other Reasons 2,415,588 32% Terminated In Force TL 11,716,229,42 TL 21,921,86,114 35% 65% Transferred to Another Pension Company TL 2,353,978,189 7% Merged Contracts TL 1,455,826,79 4% Terminated with Other Reasons TL 7,96,424,774 24% All contracts written as of 213 year-end are classified as in force and terminated. The total contribution of TL 33,638,89,156 for all the contracts written as of 213 year-end is analyzed in terms of enforcement. 1.2 Contracts Distribution of Contracts according to their Types G.7 Individual Pension Contracts 3,439, % Group Individual Contracts 963,85 2.6% Individual Pension Contracts TL 18,639,653, % Group Individual Contracts TL 5,58,45, % Noncontributory Group Contracts 283, % Noncontributory Group Contracts TL 925,614, % Distribution of contracts in force according to their types as of 213 year-end. Distribution of the total amount of accumulations of participants according to contract types as of 213 yearend. And also accumulated amount of participant s state contribution reached TL 1,151,765,932 as of 213 year-end. 12

15 1 - Individual Pension System Data Distribution of Contracts according to Regions G.8 55 Ratio of Contracts as of 213 Year-end (%) Ratio of Total Amount of Contributions as of 213 Year-end (%) Ratio (%) Marmara Central Anatolia Aegean The Mediterranean The Black Sea Southeast Anatolia East Anatolia Region Distribution of contracts in force as of 213 year-end and distribution of the total amount of initial (new entry to system), regular and additional contributions paid to these contracts in 213 are analyzed according to Regions. The data about Regions for the contracts are gathered according to the provinces where the participants reside contracts with participants living abroad are not shown on the graph. Distribution of Terminated Contracts according to Reason New Contract Establishment in 213 G.9 G.1 Opt Outs 2,253, % Transfer of Pension Account to Another Pension Company 247, % Merging of Contracts 148, % Cancellation by Company 143, % Death/Disability 11,154.4% Retirement 7,429.26% Individual Pension Contracts 1,151, % Group Individual Contracts 337,21 2.8% Noncontributory Group Contracts 133,42 8.2% Distribution of 2,811,146 terminated contracts out of 7,498,821 that were written until the end of 213, according to Termination Reasons. The ratio of terminated contracts to the written contracts is 37.5%. 5.3% of this ratio is Transfer of Pension Account to Another Pension Company and Consolidation of Contracts, 1.9% is Cancellation by Company,.2% is other involuntary reasons (retirement, death, disability). The termination ratio of voluntarily opt outs of contracts entered the system with new contract establishment is 3.1%. Contracts of retired participants, who preferred to stay in the system and took programmed withdrawals, are not shown on the graph, because they were still in force. Contracts entered the system in 213 with a new contract establishment analyzed, according to contracts types. The ratio of individual pension contracts was 73.7%, group individual contracts was 2.7% and noncontributory group contracts was 5.6% on average to the whole contracts entered the system with a new contract establishment before 213. Number of new entries in 213 is 65% more than in

16 1 - Individual Pension System Data Distribution of Contracts in Force and Terminated G.11 Number of Contracts 1,7, 1,6, 1,5, 1,4, 1,3, 1,2, 1,1, 1,, 9, 8, 7, 6, 5, 4, 3, 2, 1, Ratio (%) Terminated In Force Entrance Year All contracts that came in force in the corresponding year are analyzed according to status of in force or terminated, as of 213 year-end. Terminations include cancellations by company, death/disability, transfer of pension account to another pension company, merging of contracts, retirement and voluntary opt outs. Distribution of Contracts according to Contracts Age G.12 1,6 1,4 Number of Contracts (Thousand) 1,2 1, Less Than 1 Year 1 Year 2 Years 3 Years 4 Years 5 Years 6 Years 7 Years 8 Years 9 Years 1 Years Elapsed Time in IPS As of 213 year-end, contracts in force are analyzed according to their completed age in the system. Average age of the contracts in force as of 213 year-end is observed to be

17 1 - Individual Pension System Data Termination Ratio of Contracts according to the Month of Enforcement (%) G.13 Termination Ratio (%) Termination Ratio (%) Number of Contracts Number of Contracts Entered the System (Thousand) Number of contracts entered the system in the specified month with a new contract establishment and the ratio of voluntary withdrawals as of 213 year-end. Distribution of Contracts Terminated Voluntarily according to their Age at Termination G.14 Number of Contracts (Thousand) Age of Contract at Termination (Months) Distribution of contracts entered the system with a new contract establishment and terminated voluntarily, according to their age at termination, as of 213 year-end. Age of the contract shows the number of exact months from the date of in force until termination. 15

18 1 - Individual Pension System Data Distribution of Participants as Existing or New Participant G.15 First Entrance Ratio of Participants 1,167, % Existing Participants 275, % Participants who bought a new contract in 213, although he has an existing contract in the system are analyzed. Totally on average 17.2% of the participants bought a new contract although he has an existing contract in the system before 213, this ratio is 19.1% for year 213. Distribution of Accumulations according to Contracts Age (TL) G.16 3,5 Accumulations of Participants (TL Million) 3, 2,5 2, 1,5 1, 5 Less Than 1 Year 1 Year 2 Years 3 Years 4 Years 5 Years 6 Years 7 Years 8 Years 9 Years 1 Years Elapsed Time in IPS As of 213 year-end, distribution of total accumulations (TL 25,145,718,418) of participants is analyzed according to completed age of the contracts. And also apart from pension funds, total amount of participant s state contributions invested reached TL 1,151,765,932 as of 213 year-end. 16

19 1 - Individual Pension System Data Distribution of Contracts Transferred to another Pension Company* Ratio of Contracts That Withdrew in the Grace Period G.17 G.18 2 years 22.3% 1 years 35.% 3 years 15.3% 1 years.% 4 years 9.1% 5 years 9.6% 6 years 5.% 7 years 2.5% 8 years 1.% 9 years.2% In Force (After the Grace Period) 1,419, % Withdrew in the Grace Period Before Contracts Come into Force 92, % Withdrew in the Grace Period After Contracts Came into Force 69,36 4.4% Distribution of contracts that transferred accumulations to another pension company according to Time Spent in the Old Company, as of 213 year-end. Transfers include only individual and group individual contracts and merged contracts written by different companies. * According to Time Spend in the Old Company Distribution of individual pension contracts and group individual contracts that withdrew in the grace period, in year 213 are shown on the graph. As of 213 yearend withdrawal right in the grace period used for 383 thousand contracts cumulatively. Distribution of Contracts Transferred to Another Pension Company G.19 Number of Contracts Transferred 7, 65, 6, 55, 5, 45, 4, 35, 3, 25, 2, 15, 1, 5, Before [-1) [1-2.5) [2.5-5) [5-7.5) [7.5-1) [1-15) [15-2) [2-25) [25-5) [5-1) [1-25) [25+) Transfer Amount Interval (TL Thousand) Distribution of contracts that transferred accumulations to another pension company according to Transfer Amount Intervals, as of 213 year-end. Transfers include merged contracts, vested amount of noncontributory group contracts written by different companies. 17

20 1 - Individual Pension System Data 1.3 Participants Accumulations of Participants according to Gender and Ages G.2 Male Age Female Accumulation (TL Million) Distribution of participants accumulations as of 213 year-end, according to their Gender and Ages. Average age of population within IPS is 38. and weighted average age is 44.8 according to the total amount of accumulations owned by participants. 58% of the total amount of accumulations owned by male participants and 42% by females. Distribution of Accumulations according to Participants Profession (%) G.21 Bank Personnel Engineer 6.2% 6.2% Public Officer Doctor/ 6.1% Pharmacist Worker 8.2% 8.% Other Housewife 2.4% 16.1% Teacher 3.5% Academician 2.5% Lawyer/Judge/Prosecutor 2.1% Retired (SSI) 1.9% Total amount of accumulations as of 213 year-end are analyzed according to participants Profession. Analysis includes data of 35% of the participants whose Profession data are available. Self Employed 28.9% Other 6.8% Retired (SSI Unknown) 1.9% Architect 1.7% 18

21 1 - Individual Pension System Data Participants Fund Preferences per Fund Group G.22 Flexible Gov't Bonds and Bills (TL) Liquid Stocks Standard Gov't Bonds and Bills (FX) Precious Metal International Flexible 33.1% Gov't Bonds and Bills (TL) 4.2% Precious Metal.3% Liquid 8.9% Stocks 7.3% Standard 5.5% Gov't Bonds and Bills (FX) 3.7% International.9% 25, 5, 75, 1,, 1,25, 1,5, 1,75, 2,, 2,25, 2,5, 2,75, 3,, 3,25, 3,5, Number of Contracts Funds of total accumulations as of 213 year-end are shown based on the fund groups. On average, 2.31 fund types were bought per contract. As of December 31, 213 flexible fund group has 21% stocks, 52% gov t bonds and bills and 3% reverse repo in its portfolio. Distribution of total amount of participants funds are shown on the pie chart. Analysis includes data of amount in trust funds. Participants Fund Preferences according to Contract Types per Fund Group G.23 Gov't Bonds and Bills (TL) Flexible Liquid Stocks Standard Gov't Bonds and Bills (FX) International Precious Metal Noncontributory Group Contracts Type of Contracts Group Individual Contracts Individual Pension Contracts Ratio (%) Funds of total accumulations as of 213 year-end according to contract types are shown based on the fund groups. As of 213 yearend accumulations of noncontributory group contracts is TL 926 million, group individual group contracts is TL 5,58 million and individual pension contracts is TL 18,64 million. On average, in noncontributory group contracts 2.32, in individual pension contracts 2.33, in group individual group contracts 2.25 fund groups were bought per contract. Analysis includes amounts in trust funds. 19

22 1 - Individual Pension System Data Preferred Distribution of Contracts by Fund Group Proportions G.24 Contracts Related to Preferred Funding Group Rate Range (9% - 1%] (8% - 9%] (7% - 8%] (6% - 7%] (5% - 6%] (4% - 5%] (3% - 4%] (2% - 3%] (1% - 2%] (% - 1%] Standard Precious Metal Ratio of Contracts (%) Averages of Fund Groups Ratio of Contracts (%) Gov't Bonds and Bills (TL) Liquid Gov't Bonds and Bills (FX) International Flexible Stocks A review of contracts choice of the relevant fund group shows that the proportion of contracts choosing Government Bonds and Bills (TL) fund group in a range of 4% - 5% to all contracts is 5.74%, while the proportion of contracts choosing Flexible fund group within the same range to all contracts is 8.27%, choosing Standard fund group to all contracts is 2.27%. The proportion of contracts choosing Stocks fund group in a range of 1% - 2% to all contracts is 4.71%, while the proportion of contracts choosing Flexible fund group within the range of % - 1% to all contracts is.92%. The study was based on fund distributions as determined by participants in the contracts, in effect as of December 31, 213. Distribution of Participants according to Regions G.25 2, Number of Participants Accumulation ( TL Million) 15, Number of Participants (Thousand) 1,8 1,6 1,4 1,2 1, ,5 12, 1,5 9, 7,5 6, 4,5 3, 1,5 Accumulation (TL Million) Marmara Central Anatolia Aegean The Mediterranean The Black Sea Southeast Anatolia East Anatolia Region Distribution of participants of contracts in force and total amount of accumulations as of 213 year-end are analyzed according to Regions. The data about Regions are gathered according to the provinces where the participants reside. 15,576 participants who are living abroad are not shown on the graph. 2

23 1 - Individual Pension System Data Participants Average Monthly Regular Contribution Planned to be Paid according to Age Groups G and under Age Age Age and over 35 Average Monthly Regular Contribution (TL) As of 213 year-end, the average monthly regular contributions planning to be paid for contracts in force are analyzed in terms of Participants Age Groups. While the average monthly regular contributions planning to be paid for contracts in force as of 213 year-end is TL 236, this amount is TL 276 for the contracts that have regular contribution payment in 213 and the monthly average of regular contributions paid to all contracts in 213 is TL 25. The area of the bubble is proportional to number of contracts in force as of 213 year-end. Distribution of New Participants according to Age Groups G.27 45, 4, Who Are Still In The System Who Have Opted Out From The System Number of Participants 35, 3, 25, 2, 15, 1, 5, 25 and under Age Age Age and over Participants' Age Groups Participants who bought a new individual or group individual contract in 213 although he has no existing contract in the system are analyzed according to participants age groups and status of contract in force or terminated, as of 213 year-end. 21

24 1 - Individual Pension System Data Accumulations of Participants according to Ages G.28 Average Accumulation Amount (TL) 4, 37,5 35, 32,5 3, 27,5 25, 22,5 2, 17,5 15, 12,5 1, 7,5 5, 2,5 Average Amount of Accumulations First and Third Quarters and Median Retirement Capital Age of Participant Accumulations of participants of contracts that are still in force as of 213 year-end are analyzed according to participants age. Distribution of Terminated Contracts according to Participants Age Groups G.29 Age , % 25 and under 177,41 8.2% Age , % Age , % 56 and over 67,36 3.1% Distribution of individual and group individual contracts that were opted out the system voluntarily until the end of 213, according to Participants Age Groups at termination. Termination ratio is 9% for individual and group individual pension contracts that were in force at the beginning of 213. When it is analyzed in age groups detail, this ratio is 14% for participants aged 25 and under, 1% for 25-34, 8% for 35-44, 7% for age groups and 6% for participants aged 56 and over. 22

25 1 - Individual Pension System Data Vesting Years Distribution of Contracts according to Payment Period G.3 G.31 1 year 11.6% 2 years 1.6% Immediate Vesting 18.7% 3 years 28.% Monthly 4,438, % Quarterly 81, % 7 years 9.8% 6 years.2% 5 years 22.9% 4 years 7.2% Semiannual 25,39.5% Annual 142,313 3.% As of 213 year-end, noncontributory group contracts in force are analyzed according to their vesting years (waiting period for deserving the total amount of contributions paid by sponsor companies and their profit). Distribution of contracts in force as of 213 year-end are analyzed according to Payment Period. Opt Outs in the Establishment Year G.32 Number of Contracts that Opted Out Termination Ratio in the Same Calendar Year 14, 7 12, 6 1, 5 Number 8, 6, 4 3 Ratio (%) 4, 2 2, Individual and group individual contracts that entered the system with a new contract establishment and terminated voluntarily in the same calendar year are analyzed, according to contracts establishment year. 23

26 1 - Individual Pension System Data Distribution of Participants and Accumulations according to Income Levels (%) G.33 2GMW < Income 3GMW 41.1% 3GMW < Income 6GMW 8.2% 6GMW < Income 1GMW 12.% 1GMW < Income 7.8% Income GMW.5% GMW < Income 2GMW 3.4% 2GMW < Income 3GMW 35.2% GMW < Income 2GMW 17.9% 3GMW < Income 6GMW 9.% 6GMW < Income 1GMW 12.9% 1GMW < Income 24.8% Income GMW.2% Distribution of participants of contracts in force according to their Level of Income as of 213 year-end. Analysis includes data of 21.5% of the participants whose income data are available. Income indicates the Net Income declared by the participant at the signing of the contract. Distribution of total amount of accumulations as of 213 year-end according to Participants Level of Income. Analysis includes 25.8% data of accumulations of participants, whose income data are available. Income indicates the Net Income declared by the participant at the signing of the contract. When only the total amount of accumulations of the contracts which came into force in 213 are analyzed, it is observed that participants with monthly income 1 times over monthly gross minimum wage, owned 43% of this accumulation. GMW = Monthly Gross Minimum Wage Analysis includes data of 25.8% of the participants whose income data are available. Income indicates the Net Income declared by the participant at the signing of the contract. Participants Entrance Age to the System G Male Female First Entrance Age to IPS First Entrance Year to IPS Participants initial entrance age to system have been analyzed in accordance to their gender and the year of their entrance. General age average of first entrance to the system is Only the first entry age of the participants who have more than one entry, considered in the study. 24

27 1 - Individual Pension System Data Distribution of Participants according to Number of Contracts Owned (%) G.35 1 Contract 8.5% Other 19.5% 2 Contract 14.6% 3 or More Contracts 4.8% Distribution of participants according to number of contracts they hold as of 213 year-end. 8.5% of participants have only one contract in the system, while 14.6% have two contracts and 4.8% have at least three contracts. However 25.6% of the amount of accumulations for contracts in force owned by participants who have two contracts and 21.8% owned by participants who have at least three contracts. Distribution of Participants according to Contract Types (%) G.36 Individual Pension Contracts 73.33% 2.48%.44%.43% 4.% 2.55% 16.77% Group Individual Contracts Noncontributory Group Contracts Distribution of participants according to type of contracts they own as of 213 year-end. Areas of intersection refer to participants who have more than one type of contract % of participants have only individual pension contracts, while participants with only group individual contract is 16.77% and participants with only noncontributory group contracts are 2.55%..44% of participants have all three types of contracts. Distribution of Participants and Accumulations of Participants according to Gender and Contract Types (%) G.37 Ratio of Participants Ratio of Accumulations Contracts' Type Male Female Male Female Individual Pension Contracts Group Individual Contracts Noncontributory Group Contracts Distribution of participants and accumulations of contracts in force as of 213 year-end, according to their Gender and Contract Types. 25

28 1 - Individual Pension System Data Distribution of Participants Ages according to Pension Companies G.38 First and Third Quarters and Median of Participants' Ages 5 45 Age of Participant Aegon Emeklilik ve Hayat Allianz Hayat ve Emeklilik Allianz Yaşam ve Emeklilik Anadolu Hayat Emeklilik Asya Emeklilik ve Hayat Avivasa Emeklilik ve Hayat Axa Hayat ve Emeklilik BNP Paribas Cardif Emeklilik Cigna Finans Emeklilik ve Hayat Ergo Emeklilik ve Hayat Fiba Emeklilik ve Hayat Garanti Emeklilik ve Hayat Groupama Emeklilik Halk Hayat ve Emeklilik ING Metlife Emeklilik Emeklilik ve Hayat Vakıf Emeklilik Ziraat Hayat ve Emeklilik Distribution of participants ages for the contracts in force as of 213 year-end are analyzed according to pension companies. Ratio of Participants Who Reentered the System After Voluntary Opt Out G Ratio (%) Reentrance Year to the System The participants who reentered the system after voluntary opt out (with no contracts left) have been analyzed in terms of the enforcement date of their new contracts. Ratio of the participants who reentered the system after voluntary opt out is 5.5% as of the end of 213. This ratio is 7.4% for the participants whose contracts come in force in

29 1 - Individual Pension System Data Ratio of Participants to the Population according to Provinces (%) G.4 İzmir Kırkareli Edirne Tekirdağ Çanakkale Balıkesir Manisa Aydın Muğla İstanbul Yalova Bursa Kütahya Uşak Denizli Bartın Kastamonu Sinop Zonguldak Karabük Kocaeli Düzce Sakarya Çankırı Bolu Çorum Bilecik Burdur Afyon Eskişehir Isparta Antalya Ankara Konya Kırıkkale Kırşehir Nevşehir Aksaray Karaman Mersin Niğde Yozgat Samsun Amasya Kayseri Tokat Ordu Sivas Kahramanmaraş Adana Osmaniye Gaziantep Kilis Hatay Rize Trabzon Giresun Gümüşhane Bayburt Malatya Adıyaman Erzincan Tunceli Elazığ Şanlıurfa Bingöl Artvin Erzurum Muş Bitlis Ardahan Kars Ağrı Diyarbakır Siirt Batman Şırnak Mardin 1.1% - 18.% 8.1% - 1.% 6.1% - 8.% 4.1% - 6.% 3.1% - 4.% 1.% - 3.% Iğdır Van Hakkari Ratio of number of participants of contracts in force as of 213 year-end to the general population between ages in their home city is depicted in the map. The first three provinces with highest ratios are Muğla (18%), İstanbul and Antalya (15%) and İzmir (13%). Growth Rate of Number of Participants according to Provinces (%) G.41 İzmir Kırklareli Edirne Tekirdağ Çanakkale Balıkesir Manisa Aydın Muğla İstanbul Yalova Bursa Denizli Kütahya Uşak Bartın Kastamonu Sinop Zonguldak Karabük Samsun Kocaeli Düzce Sakarya Çankırı Bolu Çorum Amasya Tokat Bilecik Ankara Eskişehir Kırıkkale Yozgat Burdur Afyon Isparta Antalya Konya Aksaray Karaman Mersin Kırşehir Nevşehir Niğde Adana Kayseri Ordu Sivas Kahramanmaraş Osmaniye Gaziantep Hatay Kilis Trabzon Giresun Gümüşhane Bayburt Malatya Adıyaman Erzincan Tunceli Elazığ Şanlıurfa Rize Bingöl Artvin Erzurum Muş Bitlis Diyarbakır Siirt Batman Mardin Ardahan Kars Ağrı Şırnak 6.1% - 8.% 5.1% - 6.% 4.1% - 5.% 3.1% - 4.% 25.1% - 3.% Iğdır Van Hakkari Growth rate of number of participants of contracts in force as of 213 year-end, compared to the year-end values of the previous year, according to the provinces where the participants reside are analyzed. The first three provinces in growth rate as of 213 year-end are Bingöl (78%), Hakkari (71%) and Batman (62%). 27

30 1 - Individual Pension System Data 1.4 Contributions Distribution of Contributions* according to Distribution and Marketing Channel (%) G.42 Individual Direct Sales 5,97,7, % Corporate Sales 414,797,21 5.4% Agent 958,49, % Bank 5,422,156,13 7.3% Other 138,852,429 %1.8 Individual Direct Sales 942,369, % Bank 1,113,478, % Corporate Sales 372,515,97 4.8% Other 13,95,7 1.7% Agent 838,893, % Distribution of the total amount of initial (new entry to system), regular and additional contributions (TL Million 7,715) paid to contracts in 213, in terms of Distribution Channel is analyzed. Other include Call Center and Broker channels. Distribution of the total amount of initial (new entry to system), regular and additional contributions (TL Million 7,715) paid to contracts in 213, in terms of Marketing Channel is analyzed. Other include Call Center, Broker and Internet channels. Regardless of the intermediary who has signed the contract, marketing channel is the channel which has been effective in reaching the participant. * Contributions are total of initial, regular and additional contributions paid in 213. Change in Average of Regular Contributions Paid in a Year (TL) G.43 Average of Total Amount of Regular Contributions Paid in the Year 3, Average of total amount of contributions paid by participants for the relevant year escalated by mid-year inflation rates until 213 2,5 Amount (TL) 2, 1,5 1, 5 Average of total amount of regular contributions paid by participants in the corresponding year. Participants are selected among the ones who were in the system for the whole year period (contracts ages >= 12 months as the corresponding year-end). Average of total regular contributions paid during the year was escalated by mid-year inflation rates until

31 1 - Individual Pension System Data Change in Regular Contribution Payment G.44 7 Total Amount of Regular Contribution Paid Number of Contracts into which Regular Contribution Paid 3,5 6 3, Amount (TL Million) ,5 2, 1,5 1, Number (Thousand) Payment Period The total amount of regular contributions paid to the system between 212 and 213 are analyzed according to payment month. Cumulative Change in Contributions according to Contribution Type G.45 Amount (TL Million) 3, 27,5 25, 22,5 2, 17,5 15, 12,5 1, 7,5 5, 2,5 Regular Contribution Initial Contribution (New Entry to System) Initial Contribution (Transfer of Accumulations from Outer Systems*) Additional Contribution * Transfer of accumulations from outer systems includes transfer of accumulations in life insurance and in provident funds to the individual pension system. Provident funds include funds from associations, foundations and other organizations with retirement provisions. Distribution of contributions paid to system is analyzed according to Contribution Type as of 213 year-end. 29

32 1 - Individual Pension System Data Change in Contributions Paid for Contracts in Force according to Years G.46 Total amount of contributions for the relevant year escalated by mid-year inflation rates until , Total Amount of Contributions (TL Million) 7, 6, 5, 4, 3, 2, 1, Total amount of initial (new entry to system), regular and additional contributions paid for contracts that came in force as of 213 year-end are analyzed according to payment years. Contributions paid during the year escalated by mid-year inflation rates until 213. Distribution of Contributions* according to Marketing Channel and Payment Period (%) G.47 Monthly Quarterly Semiannual Annual Individual Direct Sales Corporate Sales Agent Bank Other Contributions (%) * Contributions are total of initial, regular and additional contributions paid in 213. Distribution of the total amount of initial (new entry to system), regular and additional contributions (TL Million 7,715) paid to contracts in 213,, in terms of Payment Period, in the detail of Marketing Channel is analyzed. Other include Call Center, Broker and Internet channels. Regardless of the intermediary who has signed the contract, marketing channel is the channel which has been effective in reaching the participant. Contracts with monthly payment period are providing 78 percent and contracts with annual payment period are providing 19 percent of contributions. 3

33 1 - Individual Pension System Data Accumulations and Number of Participants according to Accumulation Amount Intervals G.48 4,5 Accumulation Number of Participants 2,7 Total Accumulations (TL Million) 4, 3,5 3, 2,5 2, 1,5 1, 2,4 2,1 1,8 1,5 1,2 9 6 Number of Participants (Thousand) 5 3 [.1- [1,- 1,) 2,5) [2,5-5,) [5,- 7,5) [7,5-1,) [1,- 15,) [15,- 2,) Accumulation Amount Intervals (TL) [2,- 25,) [25,- 5,) [5,- [1,- [25,+) 1,) 25,) Total amount of accumulations as of 213 year-end are analyzed according to accumulation amount intervals of participants. Accumulations and Number of Participants according to Participants Completed Month in IPS G.49 Accumulation Number of Participants 3,5 1,4 Total Accumulations (TL Million) 3, 2,5 2, 1,5 1, 1,2 1, Number of Participants (Thousand) 5 2 [,12) [12,24) [24,36) [36,48) [48,6) [6,72) [72,84) [84,96) [96,18) [18,12) [12,123) Participants' Completed Month in IPS Total amount of accumulations as of 213 year-end are analyzed according to participants completed month in IPS. 31

34 1 - Individual Pension System Data Average Monthly Regular Contribution according to Provinces G Average Monthly Regular Contribution Paid (TL) İstanbul Ankara İzmir Antalya Bursa Adana Kocaeli Muğla İçel Konya Provinces (Top 1 Provinces Where The Participants Reside) The average monthly regular contributions paid in 213 for the contracts in force as of 213 year-end are analyzed according to the Top 1 Provinces Where The Participants Reside. The average monthly regular contribution paid for whole contracts in force as of 213 year-end is observed to be TL 25 in 213. Distribution of Contributions* according to Provinces (%) G.51 İzmir 621,394, % Ankara 772,59, % Antalya 266,517, % Other 76 Provinces and Participants Living Abroad İstanbul 2,631,186,2 2,678,252, % 37.% Bursa 261,769, % Other 1,871,529, % Kocaeli 187,322, % Adana 18,58, % Muğla % İçel 13,39,38 1.8% Aydın 122,286,23 1.7% Distribution of the total amount of initial (new entry to system), regular and additional contributions paid in 213 for the contracts in force as of 213 year-end, according to the Provinces Where The Participants Reside. * Contributions are total of initial, regular and additional contributions paid in

35 1 - Individual Pension System Data Average Monthly Regular Contribution of Participants according to Gender G.52 Male Female Male (Average regular contributions for the relevant year escalated by mid-year inflation rates until 213) Female (Average regular contributions for the relevant year escalated by mid-year inflation rates until 213) Amount (TL) Average of monthly payment of regular contributions of contracts is analyzed according to payment year and participants gender detail. The averages calculated are escalated by mid-year inflation rates until 213. Average Monthly Regular Contribution according to Geographical Regions G Average Monthly Regular Contribution Paid (TL) in 212 Average Monthly Regular Contribution Paid (TL) in 213 Ratio of Contracts as of 213 Year-end (%) 5 Average Monthly Regular Contribution (TL) Ratio of Contracts as of 213 Year-end (%) Marmara Central Anatolia Aegean The Mediterranean The Black Sea Southeast Anatolia East Anatolia Region The average monthly regular contributions paid for the contracts in force according to Regions are analyzed as of 213 year-end. The data about Regions for the contracts are established according to the provinces where the participants reside. The average monthly regular contribution paid for contracts in force as of 213 year-end is observed to be TL 25 in 213. This amount is TL 219 for the Marmara region. In addition to the ones analyzed, there are 18,159 contracts with participants who are living abroad. 33

36 1 - Individual Pension System Data Average Monthly Regular Contribution according to Payment Period G.54 Average Monthly Regular Contribution Paid (TL) in 212 Average Monthly Regular Contribution Paid (TL) in Average Monthly Regular Contribution (TL) Monthly Quarterly Semiannual Annual Payment Period The average monthly regular contributions paid for the contracts in force according to Payment Period are analyzed as of 213 year-end. An analysis of the current payment periods of contracts as of 213 year-end indicates that 94.7% preferred monthly, 1.7% preferred quarterly,.5% preferred semiannual and 3.% preferred annual payment periods. The average monthly regular contribution paid for contracts that preferred monthly payment period and in force as of 213 year-end is observed to be TL 192 in 213. Average Monthly Regular Contribution according to Distribution Channel G.55 Average Monthly Regular Contribution Paid in 213 (TL) Average Monthly Regular Contribution Paid in 213 (TL) Ratio of Contributions* Paid in 213 (%) Ratio of Contributions* Paid in 213 (%) Individual Direct Sales Corporate Sales Agent Bank Other Distribution Channel * Contributions are total of initial, regular and additional contributions paid in 213. The average monthly regular contributions paid for the contracts in force according to Distribution Channel are analyzed as of 213 year-end. Other include Call Center and Broker channels. For Individual Direct Sales contracts that are in force as of 213 yearend, which account for 66% of contributions paid to these contracts in 213, average monthly regular contribution paid is observed to be TL 22 in

37 1 - Individual Pension System Data Contributions* according to Contract Types G.56 Total Amount of Contributions Average Monthly Regular Contribution Total Amount of Contributions (TL Million) 7, 6, 5, 4, 3, 2, 1, Average Monthly Regular Contribution (TL) Individual Pension Contracts Group Individual Contracts Noncontributory Group Contracts * Contributions are total of initial, regular and additional contributions paid in 213. The total amount of initial (new entry to system), regular and additional contributions (TL Million 7,715) and average monthly regular contributions paid to contracts in 213 analyzed in terms of Contract Types. Distribution of Contributions according to Average Monthly Regular Contribution Intervals G.57 2,5 28.3% 2, 23.4% Amount (TL Million) 1,5 1, 8.4% 17.8% 9.7% 5 5.4% 6.2%.6% [,5] (5,1] (1,15] (15,25] (25,35] (35,45] (45,55] (55,+] Average Monthly Regular Contribution Interval (TL) Distribution of the total amount of initial (new entry to system), regular and additional contributions (TL Million 7,232) paid in 213 for the contracts in force as of 213 year-end in terms of Average Monthly Regular Contribution Interval. Average Monthly Regular Contribution Interval shows the average monthly regular contribution amount paid by participants in

38 1 - Individual Pension System Data Ratio of Contributions* and Contracts according to Monthly Paid Regular Contribution Intervals G % Ratio of Contracts Ratio of Contributions 35 Ratio (%) % 23% 18% 17% 14% 12% 1% 8% 7% 6% 5% 4% 3% 2% % [,5) [5,1) [1,15) [15,2) [2,25) [25,3) [3,35) [35,1.] * Contributions are total regular contributions paid in 213. Monthly Paid Regular Contribution Interval (TL) Ratio of contributions* paid in 213 and ratio of contracts are analyzed in terms of Average Monthly Regular Contribution Intervals. Analysis includes data of contracts which have paid average monthly regular contribution 1, TL and below. Average Monthly Regular Contribution Interval shows the average monthly regular contribution amount paid by participants in 213. Distribution of Contracts Terminated Voluntarily according to Contracts Types G.59 1 Individual Pension Contracts Group Individual Contracts Noncontributory Group Contracts Ratio (%) Change in distribution of contracts, entered the system with a new contract establishment and terminated voluntarily analyzed according to contracts types, as of 213 year-end. 36

39 1 - Individual Pension System Data Contracts Terminated Voluntarily according to Contracts Age and Average Monthly Regular Contribution G.6 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 1 and over Average Monthly Regular Contribution Interval (TL) (25+] (15,25] (1,15] (5,1] [,5] Ratio of Terminated Contracts (%) The ratio of contracts terminated voluntarily in 213 is analyzed according to contracts age and the average monthly regular contribution paid for them in 213. Distribution of Contributions* according to Payment Instrument G.61 Credit Card 56.9% Automatic Payment 24.9% Bank Transfer/Cash 18.3% Distribution of the total amount of initial (new entry to system), regular and additional contributions paid in 213 for the contracts in force as of 213 year-end in terms of Payment Instrument. Cheque/Postal Cheque contributions are not shown on the graph because the amount is too small. * Contributions are total of initial, regular and additional contributions paid in

40 1 - Individual Pension System Data Cumulative Change in Fees according to Fee Types G.62 Administrative Expenses Fee Fund Management Fee 54% Entrance Fee (Paid at Termination) Entrance Fee (Paid at Entrance) Administrative Expenses Fee 52% 24% 1% 9% 12% Amount (TL Million) 3,5 3,25 3, 2,75 2,5 2,25 2, 1,75 1,5 35% 41% 32% 12% 38% 14% 1% 35% 14% 12% 1% 49% 28% 9% 13% 45% 1% 3% 11% 13% 1% 27% 8% 13% % 1,25 3%- 38% 16% 1, 75 41% 1% 8% 19% 1% 1% Distribution of fees (TL Million 3,326) deducted from the contracts are analyzed according to Fee Type as of 213 year-end. The pie charts illustrate cumulative distribution of fee types as of year-ends. Change in Administrative Expenses Fee Ratio (%) G.63 Ratio of Administrative Expenses Fee in the Related Month (%) Ratio of Cumulative Administrative Expenses Fee (%) 5.8 Ratio of Cumulative Administrative Expenses Fee for the Related Year-end (%) Fee / Non Transferred Payments (%) The graph shows the administrative expenses fee for contracts, deducted off all the payments except the transferred amounts as of 213 year-end. Ratio of cumulative administrative expenses fee is calculated as 2.86% for whole, 3.38% for individual pension contracts, 1.2% for group individual contracts and.22% for noncontributory group contracts as of 213 year-end. Regulations on Individual Pension System that published on November 9, 212, and through this regulation from 1 January 213 the maximum rate of administrative expenses fee is %2. 38

41 1 - Individual Pension System Data Income Withholding Tax G Individual Pension Contracts Group Individual Contracts Noncontributory Group Contracts Amount (TL Million) Cumulative change in amount of income withholding tax of voluntarily opted out contracts are analyzed, for year 213. June 29, 212, Law on Amendments to Individual Pension Savings and Investment System Law, and to Certain Laws and Decrees amends certain provisions of Income Tax Law and Individual Pension Savings and Investment System Law No The law in force as of 29 August 212 provides withholding tax rates to be imposed on the amount of revenues upon withdrawals from the system. 39

42 1 - Individual Pension System Data 1.5 Pensioners Retirement in IPS Until , 7,577 participants have exercised their right of retirement and are entitled to access their accumulation as programmed or lump sum withdrawal. These participants comprise approximately 52% of all entitled to retirement. 48% of participants entitled to retirement chose not to exercise their right and they continue to save in the individual pension system. As set by the regulation, retirement from the individual pension system requires turning the age of 56 and minimum 1 years in the system. The first retirees comprise individuals, who transferred their funds from life insurance or provident funds, associations, foundations or other organizations with retirement provisions. Contributions either transferred from outside systems or paid in the individual pension system total to TL 3.6 million, and within the approximately 3-year period these contributions stayed in the system, they have appreciated 22% after income withholding tax, totaling to TL million. When pension payments to individuals are considered, mean accumulation is approximately TL 66,15 and the median around TL 3,6, while 75% of pensioners received TL 18,75 or more. G.65 25, Total Amount Paid to Retired First and Third Quarters and Median of Amount Paid to Retired 1 22,5 9 2, 8 Amount (TL Million) 17,5 15, 12,5 1, 7, , 2 2,5 1, Amount (TL Thousand) Date of Retirement 4

43 1 - Individual Pension System Data Change in Number of Retired Participants G.66 8, Number of Retired Participants 7, 6, 5, 4, 3, 2, 1, Development of Number of Retired Participants as of 213 year-end. Retired participants include participants, who used retirement right but preferred to stay in the system after retirement and took programmed withdrawal together with the participants who opted out the system as retired and took lump sum payment. There are 7,577 retired participants as of 213 year-end. Development of Participants according to Date they can Retire G.67 Eligible for Retirement in the Related Month Number of Participants 35, 3, 25, 2, 15, 1, 5, Eligible for Retirement in the Related Month Total Number of Participants Eligible for Retirement (Cumulative) ,4, 1,2, 1,, 8, 6, 4, 2, Total Number of Participants Eligible for Retirement (Cumulative) Participants of contracts in force as of 213 year-end, who were eligible for retirement but not retired yet and who will be eligible until the end of 223 are analyzed, according to date they can retire. Retirement dates of participants of the contracts in force as of 213 year-end are calculated with the assumption that existing contracts will continue. 41

44 1 - Individual Pension System Data Contributions and Net Returns of Retired Participants (TL) G Net Amount of Return from the System Total Contributions Paid 12 Amount (TL Million) Year of Retirement Contributions and net amount of return of participants, who have opted out from the system as retired as of 213 year-end, are analyzed. Of the participants who are qualified for retirement, 56 retired in 27, 317 retired in 28, 1,515 retired in 29, 89 retired in 21, 952 retired in 211, 1,295 retired in 212 and 2,1 retired in 213 and took their accumulations. Analysis does not include data of participants who transferred of accumulations in provident funds to the individual pension system to take programmed withdrawal and then opted out from the system before 36 months. Retired Participants according to Retirement Payment Intervals G.69 Total Amount Paid to Retired (TL) Number of Retired Participants 14 3,5 12 3, Amount (TL Million) ,5 2, 1,5 1, Number 2 5 [,25) [25,5) [5,75) [75,1) [1,25) [25,2.1] Retirement Payment Intervals (TL Thousand) Distribution of retired as of 213 year-end according to the Total Amount Paid to Retired. Retired participants include participants, who transferred of accumulations in provident funds to the individual pension system to take programmed withdrawal, who used retirement right but preferred to stay in the system after retirement and took programmed withdrawal together with the participants who opted out the system as retired and took lump sum payment. [,25,) payment interval includes participants who preferred to take programmed withdrawal but do not take income yet. 42

45 1 - Individual Pension System Data Distribution of Retired Participants according to Time Spent in the Individual Pension System G.7 Month in IPS Number of Retired Distribution of retired participants, who have opted out of the individual pension system (IPS) or prefered to stay in the system and took programmed withdrawals, according to time spent in the individual pension system. Even if the participant has transferred accumulations in life insurance or provident funds to the system and has fulfilled the conditions for retirement, she must also stay in the system for at least 36 months. The calculation of this period starts from the date of the first transfer. Provident funds include funds from associations, foundations and other organizations with retirement provisions. Analysis does not include data of participants who transferred of accumulations in provident funds to the individual pension system to take programmed withdrawal. 43

46 1 - Individual Pension System Data 1.6 Intermediaries and e-beas* * Individual Pension Intermediaries Exam (Electronic) Intermediaries according to the Status of License G.71 25, Intermediaries Licensed and Sales Executive as of year-end Intermediaries Licensed but not Sales Executive as of year-end Terminated Licenses in the year 2, Number 15, 1, 5, Cumulative change in number of intermediaries according to their license status and number of licenses cancelled during the year analyzed. As of 213 year-end, a total number of 9,32 intermediaries lost their license because they do not take complementary training. 3.5% of these intermediaries relicensed. Distribution of Intermediaries according to Regions G.72 Do not Sale Annual Sales Less Than 12 Number of Intermediaries 12, 1, 8, 6, 4, 2, Marmara Annual Sales More Than 12 Central Anatolia Aegean The Mediterranean Number of Average Monthly New Contracts The Black Sea Southeast Anatolia East Anatolia Number of Average Monthly New Contracts Region Number of intermediaries licensed and sales executive as of 213 year-end analyzed according to Regions. The data about Regions for the intermediaries are gathered according to the provinces where the intermediaries reside. Number of average monthly new contract establishment in 213 and intermediaries sales status also detailed on the graph. 44

47 1 - Individual Pension System Data Contracts according to Distribution Channel Distribution of Intermediaries according to Distribution Channel (%) G.73 G.74 Individual Direct Sales 3,7, % Corporate Sales 25, % Agent 449, % Bank 911, % Other 68, % Bank 12, % Individual Direct Sales 6, % Agent 4, % Corporate Sales 188.8% Other % Ratio of 4,687,675 contracts in force according to Distribution Channel as of 213 year-end. Other includes Call Center and Broker channels. Number of intermediaries licensed and sales executive as of 213 year-end analyzed according to Distribution Channel, Other includes Call Center and Broker channels. Ratio of Contributions*, Intermediaries, Contracts and Terminated Contracts according to Age Groups of Intermediaries (%) G.75 Ratio of Intermediaries (%) Ratio of Contributions Paid in 213 (%) 6 Ratio of Contracts (%) Termination Ratio of Contracts (%) 6 Ratio (%) Termination Ratio of Contracts (%) Age Age 26-3 Age Age 36-4 Age and over Intermediaries' Age Groups * Contributions are total of initial, regular and additional contributions paid in 213. Ratio of Contributions Paid in 213, Intermediaries, Contracts and Terminated Contracts for contracts in force according to Intermediaries Age Groups as of 213 year-end. 45

48 1 - Individual Pension System Data Ratio of Contracts and Contributions according to Distribution Channel (%) G.76 7 Ratio of Intermediaries (%) Ratio of Contracts (%) Ratio of Contributions Paid in 213 (%) 6 5 Ratio (%) Individual Direct Sales Bank Agent Corporate Sales Other Ratio of Intermediaries, Contracts and Contributions Paid in 213 for contracts in force according to Distribution Channel as of 213 year-end. Other includes Call Center and Broker channels. Distribution Channel is the channel of the intermediary who has signed the proposal from of the pension contract. Contributions are total of initial, regular and additional contributions paid in 213. Ratio of Contracts and Contributions according to Marketing Channel (%) G.77 7 Ratio of Intermediaries (%) Ratio of Contracts (%) Ratio of Contributions Paid in 213 (%) 6 5 Ratio (%) Individual Direct Sales Bank Agent Corporate Broker Call Center Internet Sales Ratio of Intermediaries, Contracts and Contributions Paid in 213 for contracts in force according to Marketing Channel as of 213 year-end. Regardless of the intermediary who has signed the contract, marketing channel is the channel which has been effective in reaching the participant. Contributions are total of initial, regular and additional contributions paid in

49 1 - Individual Pension System Data Distribution of e-beas Takers according to Distribution Channel G.78 15, Individual Direct Sales Agent Bank Independent Applications Other 12,5 Number of Candidates 1, 7,5 5, 2, e-beas Taking Year Analysis of 81,91 candidates who took e-beas until the end of 213 according to Distribution Channel during exam date. Others include Corporate Sales, Call Center and Broker channels. Distribution of e-beas Takers Grades Intervals according to Distribution Channel (%) G Individual Direct Sales Agent Bank 14 Ratio of e-beas Takers (%) Grade Interval A group of 13,7 candidates who took e-beas in 213 and whose Distribution Channel was Individual Direct Sales (32%), Agent (19%) or Bank (49%) during exam date were analyzed according to Grade Intervals. Average grade was 71 for Individual Direct Sales, 62 for Agent and 63 for Bank Distribution Channel. 47

50 1 - Individual Pension System Data The Progress of e-beas Takers Success Ratio G.8 95 Ratio of Success (%) Number of Candidates 9, 9 8, 85 7, Ratio of Success (%) , 5, 4, 3, Number of Candidates 6 2, 55 1, The progress of cumulative success ratio of e-beas takers until the end of 213 has been analyzed. 213 success ratio is 55.61% and cumulative success ratio is observed to be 54.74% as of 213 year-end. Distribution of e-beas Takers and Successful Ones according to Age Groups G.81 6, Number of Candidates Number of Successful Candidates 5, Number 4, 3, 2, 1, 2 and under Age Age 26-3 Age Age 36-4 Age and over Intermediaries' Age Groups 14,51 e-beas takers and 8,64 successful ones in 213, has been analyzed according to Age Groups during exam date. 48

51 1 - Individual Pension System Data The Success Ratio of e-beas Takers according to Gender G Male Female 7 Ratio of Success (%) e-beas Taking Year The success ratio e-beas takers until the end of 213, has been analyzed according to Gender. Cumulative success ratio is observed to be 57.5% for male e-beas takers and 52.7% for females as of 213 year-end. 58% of candidates who took e-beas were female and 42% male until the end of 213. These ratios were 54% female and 46% male for candidates who took e-beas in 213. Distribution of Intermediaries according to Gender and Ages G.83 Male Age Female 1,1 1, Number of Intermediaries' , 1,1 Number of intermediaries are 26,639 as of 213 year-end. 54.1% of intermediaries are female and 45.9% are male. 49

52 1 - Individual Pension System Data Distribution of State Contribution Paid according to Contract Types 1.7 State Contribution 213 Year-End State Contribution Total Amount Paid (TL) 1,369,932,116 Number of Participants 2,8,129 Number of Contracts 3,338,446 Average Amount per Contract (TL) 41 Average Amount per Participant (TL) 489 Law No.6327 on the Amendment of Private Pension Savings and Investment System Law and Certain Laws and Decree Laws published in the Official Journal No and dated introduces new arrangements for the elimination of shortages observed in the implementation relating to the running of private pension system and accelerating the development of the system. In this context, dramatic changes have been realized in the incentive structure of the private pension system to be valid as of According to this, instead of the incentive allowing the participants to deduct the paid contribution amounts from income tax base, 25% of the contribution amount paid to the private pension system by the participant will be deemed as state s contribution. Furthermore, significant arrangements have been made towards encouraging the participation to the system on a corporate basis, eliminating conflicts in taxation practices, increasing added value for participants. Percentage of entitlement to state contribution, based on the period of time spent within the system as from January 1, 213, shall be 15% from 3 to 6 years, 35% from 6 to 1 years, 6% for 1 years and over and 1% for retirement, death and disability. On the basis of the returns of the entitled portion of the state contribution, a withholding tax of 15% shall be imposed for those who pay contributions for less than 1 years, 1% for those who pay contributions for at least 1 years but opt out before they are entitled to retirement, and 5% for those who opt out due to reasons such as retirement, death and disability. For participants who entered the system before January 1, 213 and whose contracts are in force as of January 1, 216, a one-timeonly year addition, provided under provisional article 2 of the Law No. 6327, shall be made to their contracts, considering the elapsed time in individual pension system as of January 1, 213, with regard to the calculation of the participants entitlement time for state contribution. Accordingly, on January 1, 216, 1 year shall be added to the participants entitlement time for state contribution if they have stayed within the system for more than 3 years up to 6 years (including), 2 years shall be added if they have stayed for more than 6 years up to 1 years (including), and 3 years shall be added if they have stayed for more than 1 years. If a participant who is in the individual pension system as of May 29, 212 terminates their pension contract and withdraws all or part of their savings for any reason between June 29, 212 and June 29, 214, no state contribution shall be paid for their contributions until December 31, 214. This provision shall not apply to those participants who withdraw in the grace period before contract comes into force or whose proposal is rejected by the pension company, because they have not yet entered the system. No state contribution shall be paid for contributions that have been collected in 212 and for contributions transferred in cash to company accounts in 213 but provisioned in 212. Distribution Ratio of State Contribution Paid to Participants according to Entrance Year G.84 G % 7.6% Individual Pension Contracts 77.6% Group Individual Contracts 22.4% 7.4% 8.2% 7.1% 7.3% Before % % 12.8% 9.8% As of 213 year-end amount of state contribution paid to individual pension contracts is TL 1,62,981,224, group individual pension contracts is TL 36,95,892. Total amount of state contribution paid to participants as of 213 year-end analyzed according to entrance year of the participants. Participants who entered to system in 28 owned minimum rate of amount with TL 89,659,362 and participants who entered to system in 213 owned maximum rate of amount with TL 344,496,543. 5

53 1 - Individual Pension System Data Distribution Ratio of State Contribution Paid according to Gender Distribution Ratio of State Contribution Paid according to Age Groups G.86 G.87 Age % Male 56.4% Female 43.5% Age % Age % 25 and under 56 and over 3.5% 9.5% As of 213 year-end, 56% of the total amount of state contribution paid to male participants and 44% to females. And also, 58% of the total amount of accumulations owned by male participants and 42% by females. State contribution paid as of 213 year-end analyzed according to age groups. The smallest share of total amount of state contribution paid to 25 and under age group with TL 47,392,455 and the biggest share paid to age group with TL 489,292,535. And also, 6% of total amount of accumulations owned by 25 and under age group, 35% owned by age group, 34% owned by age group, 2% owned by age group and 5% owned by 56 and over age group respectively. Average Amount of State Contribution Paid to Participants according to Gender and Age Groups G and over Age Male Female Age Age and under 56 and over Age Age Age and under State Contribution Amount Paid (TL) Distributions of average amount of state contribution paid to participants as of 213 year-end analyzed according to Gender and Ages. TL 234 was paid to 25 year and under participants, TL 334 was paid to age groups, TL 528 was paid age groups, TL 699 was paid age groups and TL 872 was paid to 56 and over age group as an average per participant. 51

54 1 - Individual Pension System Data Top 2 Provinces Where The Highest State Contribution Paid G % Ratio (%) İstanbul 1.7% Ankara 7.9% İzmir 4.% Antalya 3.7% Bursa 2.5% Adana 2.4% Kocaeli 1.9% Muğla 1.9% İçel 1.5% Denizli 1.3% Aydın 1.3% Konya 1.3% Balıkesir 1.2% Hatay 1.2% Eskişehir 1.2% Manisa 1.2% Gaziantep 1.1% Tekirdağ 1.% Samsun.9% Kayseri Total state contribution paid as of the end of 213 is detailed in Top 2 Provinces Where the Highest State Contribution Paid. The first 2 provinces shown in the graph has a share of 83.4% in the total state contribution paid, while the first three provinces have a share of 54%. Amount of state contribution paid to the first three provinces were TL 482,61,124 for İstanbul, TL 146,929,16 for Ankara and TL 17,557,897 for İzmir. Average Amount of State Contribution Paid per Participant according to Top 2 Provinces G Contribution Amount Paid (TL) İstanbul Ankara İzmir Antalya Bursa Adana Kocaeli Muğla İçel Denizli Aydın Konya Balıkesir Hatay Eskişehir Manisa Gaziantep Tekirdağ Samsun Kayseri Average amount of state contribution paid per participant as of 213 year-end analyzed according to Top 2 Provinces Where the Highest State Contribution Paid. 52

55 1 - Individual Pension System Data Distributions of the Total Amount of State Contribution Funds according to Accumulation Intervals of State Contribution G.91 (TL 2,4 + ) 16.1% (TL - TL 3] 2.7% (TL 1,2 - TL 2,4] 15.6% (TL 6 - TL 1,2] 19.5% (TL 3 - TL 6] 28.1% Total amount of state contribution funds (TL 1,151,765,932) as of 213 year-end analyzed according to accumulation intervals of state contribution. 28% of the state contribution funds amount consists of the funds of participants in (TL 3 - TL 6] state contribution accumulations interval. Distribution of Total Amount of State Contribution Funds to Participants G Cumulative Ratio of State Contribution Fund Amount (%) Cumulative Ratio of Participants Who Have State Contribution (%) Distribution of total amount of state contribution funds TL 1,152 million as of 213 year-end to 2.5 million participants. 1% of the participants have 2% of the state contribution fund amount, 2% have 4%, 3% have 6%, 4% have 8%, 5% have 1%, 6% have 11%, 7% have 14%, 8% have 19% and 9% have 31%. 69% of the total amount of the state contribution fund belongs to participants within the last 1% segment. 53

56 1 - Individual Pension System Data 1.8 Pension Plans Company Name Aegon Emeklilik ve Hayat A.Ş. Plan No Plan Name Total Amount of Accumulations Number of Contract Daily Fund Management Fee Ratio (.%)* 2 Individual Pension Plan ,594,61 9, Small and Medium Size Enterprises Group Pension Plan 7,231,851 9, Individual Security Pension Plan 32,84,41 15, İkinci Bahar Pension Plan ,24,398 1, Allianz Hayat ve Emeklilik A.Ş. 16 IPS Plus Pension Plan 554,41,86 54, IPS Plan 16,91,392 1, Group Pension Plan ,46,382 13, Standard Employee s Group Pension Plan ,339,548 7, Exclusive Individual Pension Plan ,658,22 8, Safran Pension Plan - I 338,492,446 8, Exclusive (USD Indexed) Pension Plan 94,584,16 1, Allianz Yaşam ve Emeklilik A.Ş. 149 Pension Plan ,291,796 11, Standard Pension Plan ,72,383 11, Exclusive Individual Pension Plan ,843,734 11, Standard (USD Indexed) Pension Plan 2,926,759 11, Noncontributory Group Pension Plan ,131,898 13, Standard Pension Plan ,488,977 14, Exclusive (TL Indexed) Pension Plan 243,457,66 24, Employee s Group Pension Plan ,795,111 27, Standard Pension Plan ,922,594 31, Standard (TL Indexed) Pension Plan ,18,633 39, Exclusive Pension Plan ,32,625 73, Exclusive Individual Pension Plan ,9,98 98, Future Pension Plan 1,459,76,781 25, Standard Group Pension Plan ,581,739 28, Housewives Pension Plan ,98, , Anadolu Hayat Emeklilik A.Ş. 59 Standard Group Pension Plan ,464,83 71, Standard Group Pension Plan ,857,566 19, Standard Group Pension Plan ,286,281 17, Tomorrows Pension Plan 485,354,223 79, New Life Pension Plan 34,3,177 9, Standard Group Pension Plan ,344,12 9, Housewives Tomorrows Pension Plan 33,261,22 11, TAF Staffs Pension Plan ,929,673 15, Pension Plan ,945,226 7, Pension Plan ,354,958 7, Housewives Pension Plan ,43,44 16, Future Investment Plan 93,98,332 7, Asya Emeklilik ve Hayat A.Ş. 111 Blue Plan 23,132,168 16, Popular Plan 43,439,356 46, Employee s Group Pension Plan ,957,348 48, Employee s Group Pension Plan ,871,71 21, Noncontributory Group Pension Plan ,984,995 8,

57 1 - Individual Pension System Data Company Name Plan No Plan Name Total Amount of Accumulations Number of Contract Daily Fund Management Fee Ratio (.%)* 1 Security Plan ,744,34 9,296 4,67 5 Group Pension Plan ,439,677 9,63 5,3 7 Group Pension Plan ,346,33 9,774 5,25 8 Group Pension Plan ,32,32 17,2 4,99 Avivasa Emeklilik ve Hayat A.Ş. 12 Group Pension Plan ,749,458 8,238 5,13 15 Individual Security Plan ,37,463 1,177 5,21 17 Group Pension Plan ,219,92 23,523 2,76 2 Security Plan ,668,561 29,62 5,32 21 Individual Security Plan ,528,137 19,562 5,3 26 Diamond Pension Plan 28,31,756 18,21 5,12 48 Group Pension Plan ,235,332 12,58 3,42 18 Individual Security Plan ,165, ,967 5, Individual Security Plan ,189,99 32,63 5, Individual Pension Plan ,884,528 16,34 5, Individual Security Plan ,631,223 75,47 5, Individual Security Plan ,342,618 15,83 5,12 BNP Paribas Cardif Emeklilik A.Ş. Cigna Finans Emeklilik ve Hayat A.Ş. Ergo Emeklilik ve Hayat A.Ş. 3 Income Oriented TL Instruments Individual Pension Plan 152,215,792 27,889 4,55 4 Growth Oriented TL Instruments Individual Pension Plan 77,48,725 9,127 4,96 6 Individual Pension Plan ,88,885 36,925 5,15 12 Key Pension Plan 21,36,892 2,612 5,24 1 A Individual Pension Plan 45,568,818 26,112 4,15 2 B Individual Pension Plan 41,271,327 9,414 4,11 9 Simple Pension Individual Pension Plan ,27,279 11,68 4,16 11 Simple Pension Individual Pension Plan ,9,879 14,372 4,9 11 Finansbank A.Ş. and Subsidiaries Standard Group Pension Plan 34,875,536 12,95 3,9 11 Ergonomic Individual Pension Plan 3,71,862 7,518 4,71 13 Ergovan Individual Pension Plan 81,42,462 22,948 4,95 15 Ergovan Standard 16,432,799 7,834 5,12 1 Regular Investment Pension Plan 2,949,85 17,754 4,96 15 Practical Individual Pension Plan ,275,713 43,55 4,56 16 Mixed Individual Pension Plan ,282,138 8,38 4,91 36 Practical Individual Pension Plan ,63,431 7,651 4,57 Garanti Emeklilik ve Hayat A.Ş. 17 Employee s Group Pension Plan ,799,529 25,444 4, Individual Pension Plan ,784,644 22,274 4, Individual Pension Plan ,41,77 1,58 4,71 16 Individual Pension Plan ,694,552 2,69 5, Income Pension Plan ,535,512 43,752 5, Employee s Group Pension Plan ,119,948 12,28 5, Employee s Group Pension Plan ,114,242 8,182 4, Gruba Bağlı Individual Pension Plan ,223,198 12,711 5,17 4 Practical Plan 15,418,252 14,326 5,57 41 Practical-B Plan 5,78,353 16,35 5,5 43 Income Pension Plan ,787,423 3,536 5,62 46 Prestige Plan 81,532,487 9,677 5,18 Groupama Emeklilik A.Ş. 1 Exclusive Pension Plan 338,436,69 38,517 5,3 9 Super Pension Plan 234,39,65 21,496 5,1 21 Synergy Pension Plan ,61,752 8,891 5,13 55

58 1 - Individual Pension System Data Company Name Halk Emeklilik A.Ş. Plan No Plan Name Total Amount of Accumulations Number of Contract Daily Fund Management Fee Ratio (.%)* 1 Halk Plan ,514,53 18, Group Pension Plan ,535,7 1, Group Pension Plan ,863,82 38, Group Pension Plan ,112,491 2, Noncontributory Group Pension Plan ,798,846 13, Halk Plan - 9 4,83,2 43, ING Emeklilik A.Ş. Metlife Emeklilik ve Hayat A.Ş. 12 Individual Pension Plan ,52,627 94, Employee's Group Pension Plan ,553,876 21, ING Emeklilik Orange Pension Plan 463,35,82 85, Individual Pension Plan ,996,31 36, Noncontributory Group Pension Plan ,64,333 14, Group Pension Plan ,621,69 9, Individual Pension Plan ,749,278 23, T.Vakıflar Bankası T.A.O, Direct or Indirect Partners and Shares Group Plan 22,336,378 36, Vakıf Emeklilik Individual Pension Plan ,442,17 54, Vakıf Emeklilik Individual Pension Plan ,518,253 15, Vakıf Emeklilik A.Ş. 12 Vakıf Emeklilik Group Pension Plan ,47,518 13, Vakıf Emeklilik Group Pension Plan ,681,519 42, Vakıf Emeklilik Group Pension Plan ,283,746 12, Vakıf Emeklilik Group Pension Plan ,319,77 32, Individual Pension Plan ,76,631 11, Vakıf Emeklilik Individual Pension Plan ,78,81 2, Standard Pension Plan ,37,534 37, Standard Pension Plan - 33 (interest - free) 15,318,469 12, Ziraat Emeklilik ve Hayat A.Ş. 1 Güldüren Yarınlar Individual Pension Plan 78,763,976 71, Biz Bize Noncontributory Group Pension Plan 16,77,847 19, Biz Bize Employee s Group Pension Plan 87,477,963 26, Pırlanta Individual Pension Plan 51,51,18 16, Pension plans having more than 7,5 contracts in force as of December 31, 213. The complete list is available at * Fund management fees are calculated as averages weighted by fund net asset values of funds of contracts that are in force as of

59 1 - Individual Pension System Data 57

60

61 Pension Mutual Funds and State Contribution 22.1 Funds Worldwide Pension Funds Pension Mutual Funds and Securities Mutual Funds in Turkey Asset Allocation of Fund Groups Total Net Asset Values and Average Returns of Fund Groups Returns of Pension Mutual Funds Risk Analysis of Pension Mutual Funds State Contribution Funds Management Fees of Pension Mutual Funds and State Contribution Funds Pension Mutual Funds and State Contribution Funds Data

62 2 - Pension Mutual Funds and State Contribution Funds 2.1 Worldwide Pension Funds Importance of Pension Funds Relative to the Size of the Economy in Selected OECD Countries, 212 Netherlands Iceland United Kingdom Australia Finland Weighted average United States Canada Chile Denmark Ireland Simple average Japan Poland New Zealand Mexico Portugal Spain Norway Czech Republic Germany İtaly Korea Austria Turkey Hungary As a (%) of GDP Source: OECD Pension Market in Focus7, Issue 8, Issue 9, Issue 1. Countries with data for the years 212, 211, 21 and 29 are presented in the chart G.1 The OECD weighted average asset-to-gdp ratio for pension funds increased from 72,4% of GDP in 211 to 77.% of GDP in 212, above the 27 year-end level of 75.6%, with the Netherlands still achieving the largest ratio in 212, at 16.2%. One key indicator of the scale of pension funds activity is the market value of assets accumulated relative to the size of the economy as measured by the GDP. The higher the value of their investments, the greater will be their ability to provide high benefits to individuals. Three countries achieved asset-to-gdp ratios above 1% in 212 the Netherlands (16.2%), Iceland (141.%), Switzerland (113.6%)(not shown on the graph). In addition to these countries, the United Kingdom, Australia and Finland exceeded the OECD weighted-average asset-to-gdp ratio of 77.% with 95.7%, 91.7% and 79.3% respectively. Pension fund assets as a proportion of GDP varied in the other countries. It is to be noted that a majority of OECD countries had assets-to-gdp ratios below 2%, which pave the way for growth prospects. During the last decade, the pension fund assets to GDP ratio grew the most in percentage points in the Netherlands (from 12.6% of GDP in 21 to 16.2% of GDP in 212) and Iceland (from 84.% of GDP in 21 to 141.% of GDP in 212) whereas it declined in Hungary (from 3.9% of GDP in 21 to 3.3% of GDP in 212, after reaching a peak of 14.9% of GDP in 21), Belgium (from 5.5% of GDP in 21 to 4.6% of GDP in 212) and Portugal (from 11.% of GDP in 21 to 8.8% of GDP in 212). The decline of pension funds assets relatively to the size of the economy is explained in Hungary by the government s decision to close the mandatory private pension system at the end of 21, and in Portugal by the transfer of banks pension fund assets to the state retirement plan in 211. In absolute terms, the United States still owned the majority of assets under management of all the OECD countries, with assets worth USD 11.6 trillion in 212. In relative terms, however, the weight of assets held by pension funds in the US shrank from 67.6% in 21 to 53.4% in 212. Other countries with large pension fund systems include the United Kingdom with assets in 212 worth USD 2.3 trillion and a share of 11% of OECD pension fund market; Japan, with USD 1.4 trillion (6.7%); Australia with USD 1.4 trillion (6.3%); the Netherlands with USD 1.3 trillion (5.8%); Canada with USD 1.2 trillion (5.5%); Switzerland with USD.7 trillion (3.4%) (see Figure 4). For the other remaining 27 OECD countries, total pension fund assets in 212 were valued at approximately USD 1.8 trillion of the OECD-area total. 6 Geographical Distribution of Pension Fund Assets in OECD Countries (%) Switzerland 3.4% Canada 5.5% Holland 5.8% Australia 6.3% Other 8.2% Japan 6.7% England 1.7% Source: OECD Pension Market in Focus, Issue 1 USA 53.4% G.2

63 2 - Pension Mutual Funds and State Contribution Funds Pension Funds Real Net Rate of Investment Returns in Selected OECD Countries Netherlands Mexico Turkey Belgium Switzerland Japan Iceland Hungary Finland Luxembourg Portugal Austria Denmark Estonia Simple average Chile Greece Canada Slovenia Weighted average Italy Spain Korea New Zealand Poland Norway Slovak Republic Czech Republic Australia United Kingdom Return (%) Source: OECD Pension Market in Issue 9, Issue 1 Countries with data for the years 212 are 211 are presented in the chart. Return (%) Pension Fund Nominal and Real 5 Year (geometric) Average Annual Returns in Selected OECD Countries over Denmark Netherlands Turkey Mexico Germany Canada Switzerland Source: OECD Pension Market in Focus, Issue 1 Norway Slovenia Italy Korea Chile Nominal New Zealand Czech Republic Finland Luxembourg Real Hungary Japan Belgium G.3 Spain Austria Despite remaining uncertainties in the world economy and volatility in financial markets, that led to negative average real investment rate of returns in 211, pension funds in almost all OECD countries performed well in 212, with a simple average yield of close to 5%. In 211, 21 countries had negative real returns (in local currency and after investment management expenses) (see Figure 6). Of these 21 countries, 19 experienced positive returns in 212. The United Kingdom and the United States had better returns in 212, though still negative. Pension funds in Australia had a negative real return (equal to -.6%) in 212. On the other hand, the highest returns were seen in the Netherlands (13.5%), Mexico (9.7%), Turkey (9.6%), Belgium (9.3%), Israel (8.6%), Sweden (7.9%), Switzerland (7.5%), Japan (7.4%) and Iceland (7.1%). %). Sixteen further OECD countries saw real investment rates of returns between 2% and 7%. %. The simple average improved by 6.7 percentage points, from -1.8% in 211 to 4.9% in 212 The chart below provides, over the period , 16 OECD countries had a nominal annual rate of return higher than 2%. Turkey and Denmark came through the global instability with the best results in nominal terms, with a return equal to 11.6% and 8.5% respectively. However, after taking into account inflation, Denmark and the Netherlands are the two countries which performed the best over the period, with a real return equal to 6.1% and 3.5% respectively. Five countries had a real annual rate of return above 2%. Conversely, Estonia (-5.2%) and Iceland (-2.9%) had the lowest 5-year average real returns. Greece United Kingdom Portugal United States Poland Slovak Republic Australia Iceland Estonia G.4 61

64 2 - Pension Mutual Funds and State Contribution Funds 2.2 Pension Mutual Funds and Securities Mutual Funds in Turkey Growing by 29% in relation to the previous year, pension mutual funds reached a net asset value of TL in total as of the end of 213. Along with the funds offered to the public in 213, total number of funds offered to public rose to 23 as of December 31, 213. Twenty four out of fifty seven pension mutual funds offered to public during this year were State Contribution, twelve of them were Standard, eleven of them were Precious Metal, six of them were Flexible, two of them were Government Bond (TL), one was Liquid and one was Liquid. The following table shows mutual funds and pension mutual funds figures, asset allocation and average terms as of December 31, 213. While total amount of Type A mutual funds increased 24% and Type B mutual funds increased 2% in comparison to the preceding year, pension mutual funds grew by 29%. Mutual funds average terms were decreased by 2% and a 43% increase in the average terms of pension mutual funds has occurred. Consolidated Data of Mutual Funds as of December 31, 213 T.1 Fund Type Average Term (Days) Total Net Asset Value (TL) Stocks (%) Gov't Bonds and Bills (%) Reverse Repo (%) Takasbank Money Market (%) Foreign Securities (%) Other (%) Mutual Funds Type A 29 1,782,361, Type B 93 28,73,618, TOTAL 14 3,512,979, Pension Mutual Funds TOTAL ,186,322, Source: Capital Markets Board Total net asset value and asset allocation are the data as of January 2, 214 which is a basis for unit fund value on December 31, 213. Variation of Pension Mutual Funds Net Asset Values G.5 27, 24, Gov't Bonds and Bills (TL) Gov't Bonds and Bills (FX) Flexible Balanced* Liquid International Stocks Standard 21, 18, 15, 12, 9, Precious Metal 6, 3, Net Asset Value (TL Million) *As of the funds which contained in the balanced fund group were included in to the flexible fund group. 62

65 2 - Pension Mutual Funds and State Contribution Funds Net Asset Value of Pension Mutual Funds according to Fund Groups and Their Growth Rate in 213 G.6 Flexible Stocks Gov't Bonds and Bills (TL) Gov't Bonds and Bills (FX) International Liquid Standard Precious Metal Growth (%) ,31 1,831 1, , ,396-5 The data on bubbles represents the fund groups as of Net Assets (TL Million) values. International fund group that provided the highest average return of the private pension fund groups in 213 has also recorded 163% net asset value increase. While flexible fund group net asset value has increased by 34% ( balanced fund group were included in to this fund group), Liquid fund group 3%, Stock fund group %26 and Government Bond (FX) 17%, in group of Government Bonds (TL) funds remained constant in comparison to the preceding year in 213. Average Term in Pension Mutual Funds and Securities Mutual Funds G.7 Pension Mutual Funds Securities Mutual Funds Average Term (Days) 1,1 1, Pension Mutual Funds / Securities Mutual Funds Rate (PMF / SMF) Source: Capital Markets Board The chart above shows the historical course of average terms of fixed-yield securities, included in mutual funds and pension mutual funds. Pension mutual funds average terms were around 45 days at the end of 21, and varied between days during last two years, and decreased to some 92 days at the end of 213. Mutual funds average terms were around 43 to 263 during last ten years, and were around 14 days at the end of

66 2 - Pension Mutual Funds and State Contribution Funds Change in Pension Mutual Funds and Securities Mutual Funds G.8 Pension Mutual Funds Mutual Funds 37,5 35, 32,5 3, 27,5 25, 22,5 2, 17,5 15, 12,5 1, 7,5 5, 2,5 Type A Mutual Funds Type B Mutual Funds Total Net Asset Value (TL Million) Source: Capital Markets Board A review of the variation in the total fund value of Pension Mutual Funds and Securities Mutual Funds over the last five years reveals that Pension Mutual Funds have achieved increase of 31%, Type A Mutual Funds have achieved increase of 196% and Type B Mutual Funds have achieved increase of 23%. Last one year changes realized as 1% decrease of Type B Mutual Funds, and 29% increase of Pension Mutual Funds. 2.3 Asset Allocation of Fund Groups Portfolio allocations are calculated through funds daily net asset values. The funds offered to public in 213 are included from the calculations. State Contribution fund group is excluded from the calculation of averages. Consolidated Asset Allocation of Pension Mutual Funds (%) G.9 Rate (%) Gov't Bonds and Bills (TL) Takasbank Money Market Stocks Foreign Securities Gov't Bonds and Bills (FX) Private Sector Bonds and Bills Reverse Repo Other While ratio of government bonds within the consolidated distribution throughout 213 varied between 57-6%, goverment bonds (FX) ratio varies 3%, reverse repo ratio varies between 5-9% and stock ratio between 14-18%. Government bonds (TL) ratio is 57%, government bonds (FX) ratio is 3%, stock ratio is 14%, reverse repo ratio is 7% at the end of

67 2 - Pension Mutual Funds and State Contribution Funds Asset Allocation of Flexible Funds (%) G.1 55 Gov't Bonds and Bills (TL) Takasbank Money Market Stocks Foreign Securities Gov't Bonds and Bills (FX) Private Sector Bonds and Bills Reverse Repo Other Ratio (%) The chart above indicates asset allocations of Flexible funds which invest in the asset types specified in the legal framework, but whore asset allocation could not be known in advance because the entire fund portfolio is determined according the changing market conditions. Flexible funds represent 32% of the total net asset value. Foreign securities in asset allocation of Flexible funds cannot be followed in the graph due to the small amounts. Asset Allocation of Pension Mutual Funds in 213 according to Founder (%) G.11 Gov't Bonds and Bills (TL) Stocks Gov't Bonds and Bills (FX) Takasbank Money Market Ratio (%) Foreign Securities Reverse Repo Private Sector Bonds and Bills Other AEG ALY ALZ AND ASY AVI AXA CRD ERG FBA FNS GRN GRP HLK ING MET VKF ZRT IPS Pension Companies Ratios less than 2% are not used for the graphic data tag. The abbreviations used for Pension Companies given on page 79. The chart above presents 213 average asset allocations of pension mutual funds on founder basis. In calculating portfolio allocation, daily asset allocation of funds owned by founders were weighted by daily net asset values, and annual average asset of each investment instrument was calculated on founder basis. Funds offered to public in 213 are included in the calculations. 65

68 2 - Pension Mutual Funds and State Contribution Funds 2.4 Total Net Asset Values and Average Returns of Fund Groups Total Net Asset Values and Average Returns of Fund Groups T.2 Number of Funds Total Net Asset Value (TL) Change(%) The Share of Fund Group Net Asset value in the Total Annual Return of 213 (*) Fund Group / (%) Gov't Bonds and Bills (TL) 28 1,118,428,326 1,91,234, Flexible** 65 6,197,462,118 8,39,948, Liquid 22 1,688,869,114 2,22,351, Stocks 27 1,449,132,546 1,831,446, Standard ,223, 934,374, Gov't Bonds and Bills (FX) 8 86,231, ,41, International 21-1,396,123, Precious Metals 11-84,83, TOTAL 26 2,339,346,889 25,76,62, * Returns are weighted through daily net asset values. ** As of the funds which contained in the balanced fund group were included in to the flexible fund group. *** Standard fund category is included funds that transform from Government Bonds (TL) to Standard. The funds offered to public in 213 are excluded from the calculations. State Contribution Fund Group is excluded from table. Funds offered to public in 213 caused to establishment new fund groups called Standard and Precious Metal 9 of Gov t Bonds and Bills (TL) funds has become Standard fund and 2 of International funds has become Flexible fund in 213. Change of Net Asset Values of Fund Groups by Years (Increases and Decreases in Annual) G.12 TL Million 3, 2,8 2,6 2,4 2,2 2, 1,8 1,6 1,4 1,2 1, Gov't Bonds and Bills (TL) Liquid Flexible Balanced Stocks Gov't Bonds and Bills (FX) International The chart above shows annual variation of net asset values of pension mutual funds in relation to the previous year (Increases and Decreases in Annual) between by fund groups. 66

69 2 - Pension Mutual Funds and State Contribution Funds Returns according to Fund Groups and Their Benchmarks in 213 G.13 3 Gov't Bonds and Bills (TL) Benchmark of Gov't Bonds and Bills (TL) Liquid Benchmark of Liquid Gov't Bonds and Bills (FX) Benchmark of Gov't Bonds and Bills (FX) Stocks Benchmark of Stocks Flexible Benchmark of Flexible* International Benchmark of International Individual Pension System (IPS) Benchmark of IPS Return (%) * Only benchmark can be calculated and offered to public before 213 are calculated over 27 flexible funds. The funds offered to public in 213 are excluded from the table. The chart above provides historical variation of average returns of the fund groups and their benchmarks during 213. Average returns of the fund groups and their benchmarks are calculated by weighting with daily asset values of funds and their benchmarks. Index values since the commencement of the system can be found at the following address: Net Asset Values of Pension Mutual Funds according to Founders and Fund Groups G.14 Gov't Bonds and Bills (TL) Liquid Flexible Stocks Net Asset Value (TL Million) Gov't Bonds and Bills (FX) International Standard Precious Metal AND AVI ALY GRN VKF ING ALZ CRD GRP ZRT Chart rankings, the total net asset value of the company is made according to the size. Net Asset Value (TL Million) 5 MET FNS HLK ASY ERG AEG AXA FBA 67

70 2 - Pension Mutual Funds and State Contribution Funds The chart below provides total net asset values of pension mutual funds of pension companies as year-ends between , and their share in the total net asset as of December 31, net asset values, the amount of funds does not include state contribution funds of the founders. Net Asset Values of Pension Mutual Funds according to Founder T.3 Total Net Asset Value (TL) Founder Ratio (%) Aegon Emeklilik ve Hayat A.Ş 86,573,495 14,5,64 111,78, ,345,73 13,799, Allianz Hayat ve Emeklilik A.Ş. 433,157, ,42, ,477,674 71,27,28 878,594, Allianz Yaşam ve Emeklilik A.Ş. 1,37,198,237 1,858,44,498 2,33,47,468 3,471,275,469 4,112,14, Anadolu Hayat Emeklilik A.Ş. 1,953,537,368 2,62,41,862 3,22,237,967 4,279,682,349 4,985,921, Asya Emeklilik ve Hayat A.Ş. 23,649,4 184,822, Avivasa Emeklilik ve Hayat A.Ş. Axa Hayat ve Emeklilik A.Ş. 1,993,73,991 2,558,352,183 2,947,272,577 5,415,89 4,49,6,938 6,228,849 4,84,879,358 29,24, BNP Paribas Cardif Emeklilik A.Ş. 324,14, ,131,33 437,624, ,585,664 75,26, Cigna Finans Emeklilik ve Hayat A.Ş. 16,941, ,936,524 27,922,85 334,939, Ergo Emeklilik ve Hayat A.Ş. 16,19,455 54,26,134 89,942, ,792, ,795,54.61 Fiba Emeklilik ve Hayat A.Ş. 1,879,993.1 Garanti Emeklilik ve Hayat A.Ş. Groupama Emeklilik A.Ş. 1,326,745, ,61,726 1,834,911,32 624,289,321 2,34,846,417 69,31,583 3,321,134,36 661,51,595 4,43,976,61 687,527, Halk Emeklilik ve Hayat A.Ş. 4,458,135 35,488, ING Emeklilik A.Ş. 59,91, 639,76,41 776,282,42 1,9,693,958 1,339,126, Metlife Emeklilik ve Hayat A.Ş. 12,956,678 42,64,992 89,433,463 19,183,36 339,979, Vakıf Emeklilik A.Ş. 536,66,526 7,897, ,85,512 1,267,191,281 1,629,151, Ziraat Emeklilik A.Ş. 52,2, ,425, ,35, TOTAL 9,16,887,16 12,17,135,48 14,31,795,43 2,339,346,889 25,76,62, Net Asset Values of Pension Mutual Funds according to Founder and Their Growth Rate in 213 G ZRT 1 8 MET Growth (%) 6 4 FNS 2 ALZ ALY AND AVI CRD GRN ING VKF AEG ERG GRP -2 Fiba Emeklilik ve Hayat A.Ş. whose pension mutual funds were offered to public in 213 are not provided in the chart. Net asset values of the funds of that company can be viewed in the table above. Asya Emeklilik ve Hayat A.Ş. (682%), Halk Hayat ve Emeklilik A.Ş. (655%), and Axa Hayat ve Emeklilik A.Ş. (369%) are excluded from graphic because of adversely affect of understanding to graphic net asset values, the amount of funds does not include State Contribution funds. The size of the bubbles is proportional to the total net asset value of the companies. 68

71 2 - Pension Mutual Funds and State Contribution Funds 2.5 Returns of Pension Mutual Funds Pension Mutual Funds Performance Analysis according to Benchmark T.4 [Funds That Difference of Gross Real Returns and Real Benchmark Returns are Positive] Pension Mutual Funds (Returns in 213) Return (%) Real Return (%) Gross Real Return (Increased by Fund Management Fee) (%) Ranking of Return Ranking of Gross Real Return Benchmark Return (%) Real Benchmark Return (%) Difference (Return - Benchmark Return) 1 (%) Difference (Gross Real Return - Real Benchmark Return) 2 (%) Internal Rate Return (%) Ranking of Internal Rate Return Garanti Emeklilik ve Hayat A.Ş. Stock Group PMF Garanti Emeklilik ve Hayat A.Ş. Stock PMF Bnp Paribas Cardif Emeklilik A.Ş. Stock Growth PMF Cigna Finans Emeklilik ve Hayat A.Ş. Stock Growth PMF Allianz Yaşam ve Emeklilik A.Ş. International Composite PMF Allianz Yaşam ve Emeklilik A.Ş. Koç Share Index PMF ING Emeklilik A.Ş. Stock Growth PMF Ergo Emeklilik ve Hayat A.Ş. Gov't Bonds and Bills Income (Usd) PMF Metlife Emeklilik ve Hayat A.Ş. Flexible Group PMF Anadolu Hayat Emeklilik A.Ş. Emerging Countries Flexible Growth PMF ING Emeklilik A.Ş. Flexible Income PMF Asya Emeklilik ve Hayat A.Ş. Stock Participation Growth PMF ING Emeklilik A.Ş. Flexible Growth PMF Metlife Emeklilik ve Hayat A.Ş. Flexible PMF ING Emeklilik A.Ş. Composite Growth PMF Allianz Yaşam ve Emeklilik A.Ş. Stock Growth PMF Halk Hayat ve Emeklilik A.Ş. Gov't Bonds and Bills Income PMF Groupama Emeklilik A.Ş. Stock Growth Group PMF Allianz Yaşam ve Emeklilik A.Ş. ise Dividend index PMF Anadolu Hayat Emeklilik A.Ş. Stock Growth Group PMF Groupama Emeklilik A.Ş. Stock Growth PMF Avivasa Emeklilik ve Hayat A.Ş. Gov't Bonds and Bills Group PMF Groupama Emeklilik A.Ş. Gov't Bonds and Bills Income Group PMF Axa Hayat ve Emeklilik A.Ş. Stock Growth PMF Allianz Yaşam ve Emeklilik A.Ş. Gov't Bonds and Bills Group Income PMF Vakıf Emeklilik A.Ş. Alternative Gov't Bonds and Bills Income Standard PMF Garanti Emeklilik ve Hayat A.Ş. Flexible (TL) PMF Avivasa Emeklilik ve Hayat A.Ş. Flexible Growth (Group) PMF

72 2 - Pension Mutual Funds and State Contribution Funds Pension Mutual Funds (Returns in 213) Return (%) Real Return (%) Gross Real Return (Increased by Fund Management Fee) (%) Ranking of Return Ranking of Gross Real Return Benchmark Return (%) Real Benchmark Return (%) Difference (Return - Benchmark Return) 1 (%) Difference (Gross Real Return - Real Benchmark Return) 2 (%) Internal Rate Return (%) Ranking of Internal Rate Return Aegon Emeklilik ve Hayat A.Ş. Stock Income PMF Aegon Emeklilik ve Hayat A.Ş. Balanced PMF Bnp Paribas Cardif Emeklilik A.Ş. Gov't Bonds and Bills Income Group PMF Anadolu Hayat Emeklilik A.Ş. Stock Growth PMF Avivasa Emeklilik ve Hayat A.Ş. Gov't Bonds and Bills Income PMF Avivasa Emeklilik ve Hayat A.Ş. Gov't Bonds and Bills PMF Anadolu Hayat Emeklilik A.Ş. Flexible Growth Orange PMF Metlife Emeklilik ve Hayat A.Ş. Gov't Bonds and Bills Income Group PMF Allianz Hayat ve Emeklilik A.Ş. Gov't Bonds and Bills Income (Group) PMF Garanti Emeklilik ve Hayat A.Ş. Stock Growth PMF Groupama Emeklilik A.Ş. Gov't Bonds and Bills Income PMF Avivasa Emeklilik ve Hayat A.Ş. Stock Growth Group PMF Ergo Emeklilik ve Hayat A.Ş. Stock Growth PMF ING Emeklilik A.Ş. Flexible PMF Allianz Yaşam ve Emeklilik A.Ş. Gov't Bonds and Bills Income PMF Avivasa Emeklilik ve Hayat A.Ş. Flexible Income PMF The funds offered to public in 213 are excluded from the table. 1) Key ranking is made by decreasing fund performance that excess benchmark. 2) Gross real return is the nominal return that is decreased by inflation rate and fund management fee ratio has been ignored. In 213, according to nominal returns 44 out of 14 pension mutual funds for which benchmarks were calculated performed in excess of benchmarks while it was 12 for gross real returns of funds when compared with the real benchmark returns. 7

73 2 - Pension Mutual Funds and State Contribution Funds 213 Returns of Funds and Benchmarks* G Return of the Fund (%) 213 Return of the Benchmark (%) Company Fund Group AND ALZ ALY AEG ANE - FLX ANS - STC ANG - STD ANU - INT ANK - LQD AEU - STC ALH - STC AMG - GFX AMA - GTL AMB - GTL AMR - GFX ALI - STC ALL - LQD AMP - LQD ALR - INT AZH - STC AZO - FLX AZK - GTL AUG - GFX AZD - GFX AZY - FLX AZC - GFX AZA - GTL AZE - LQD AZL - LQD ATE - FLX AHB - STC AH5 - STC AH6 - INT ABE - FLX AH9 - FLX AH8 - FLX HS1 - GTL AH1 - GTL ATK - STD 54,99 59, Company Fund Group CRD AXA AVI ASY AND AH4 - GFX AHC - GTL AH3 - GFX AG3 - STC AG4 - FLX AG1 - GTL AG2 - GFX AH2 - LQD AGH - STC AE3 - FLX AVY - FLX AVH - STC AVD - FLX AEG - FLX AE2 - GTL AVG - GFX AVU - INT AE4 - INT AEH - STC AVB - GFX AVL - LQD AEB - STC AVE - FLX AVK - GTL AEK - GTL AE1 - LQD HEB - FLX HES - FLX HEK - STD HED - GFX HEP - LQD BPH - FLX BPU - GFX BPF - GTL BPM - LQD GRP GRN ERG FNS CRD BPL - LQD BPG - GTL BPK - GFX CHH - STC CHK - GTL CGE - FLX CGG - GTL CHL - LQD EIE - FLX EIH - STC EIY - FLX EIF - GFX EIK - GFX EIG - GTL EIP - LQD EHG - FLX GEH - STC GHT - FLX GHD - STD GEK - GTL GHG - GFX GEU - INT GHF - GTL GHK - GFX GEG - STC GHH - STC GKB - GTL GEL - LQD BEH - STC BEE - FLX BED - GFX BEK - GTL BBH - STC BGE - FLX BKB - GFX ZRT VKF MET ING HLK GRP BGK - GTL BEL - LQD HHB - STC HHK - STD HHG - GFX HHP - LQD IEF - FLX IEH - STC IEK - FLX IEE - FLX IEA - FLX IEG - GTL IEB - STD IER - LQD MHE - FLX MHK - STD MHD - GFX MHY - FLX MHL - LQD MHH - STC MHG - GTL VEH - STC VGB - STD VGD - GTL VEC - GTL VEK - STD VET - GFX VEU - INT VEG - INT VGL - LQD VEL - LQD ZHB - STC ZHG - GTL ZHD - GFX ZHR - LQD *The funds offered to public in 213 are excluded from the calculations. Fund of funds under the title abbreviations are CMB codes. 71

74 2 - Pension Mutual Funds and State Contribution Funds According to the Capital Markets Boards announcement dated December 15, 24 regarding the presentation of fund performances, determination of benchmark criteria is not obligatory for some of flexible funds, as the portfolio structure/management strategy of these funds are not suitable for benchmarking. Hence, at the table Flexible Funds are excluded in the calculation of benchmark. 213 data regarding such funds are provided below. Data of Flexible Pension Mutual Funds T.5 Pension Mutual Funds (Returns in 213) Date of Public Offering Return (%) Real Return (%) Gross Real Return (Increased By Fund Management Fee) (%) Return Ranking Ranking of Gross Real Return Internal Rate of Return (%) Internal Rate of Return Ranking Allianz Hayat ve Emeklilik A.Ş. Flexible Income PMF Anadolu Hayat Emeklilik A.Ş. Emerging Countries Flexible Growth PMF ING Emeklilik A.Ş. Flexible Income PMF Vakıf Emeklilik A.Ş. Alternative Flexible Group PMF Avivasa Emeklilik ve Hayat A.Ş. Flexible Income PMF Anadolu Hayat Emeklilik A.Ş. Flexible Income PMF Anadolu Hayat Emeklilik A.Ş. Flexible Income Group PMF Allianz Yaşam ve Emeklilik A.Ş. Alternative Flexible PMF Garanti Emeklilik ve Hayat A.Ş. Flexible Growth PMF Vakıf Emeklilik A.Ş. Flexible White Group PMF Asya Emeklilik ve Hayat A.Ş. Flexible Participation Conservative PMF Asya Emeklilik ve Hayat A.Ş. Flexible Participation Growth PMF Metlife Emeklilik ve Hayat A.Ş. Flexible PMF Asya Emeklilik ve Hayat A.Ş. Flexible Group Participation Growth PMF Metlife Emeklilik ve Hayat A.Ş. Flexible Group PMF Allianz Yaşam ve Emeklilik A.Ş. Pera Y Flexible Group PMF Anadolu Hayat Emeklilik A.Ş. Alternative Flexible Income PMF Allianz Yaşam ve Emeklilik A.Ş. Pera H Flexible Group PMF ING Emeklilik A.Ş. Flexible PMF Garanti Emeklilik ve Hayat A.Ş. Flexible Alternative PMF Ziraat Hayat ve Emeklilik A.Ş. Alternative Flexible PMF Bnp Paribas Cardif Emeklilik A.Ş. Flexible PMF Allianz Yaşam ve Emeklilik A.Ş. Pera A Flexible Group PMF ING Emeklilik A.Ş. Flexible Growth PMF Allianz Yaşam ve Emeklilik A.Ş. Flexible PMF Allianz Hayat ve Emeklilik A.Ş. Flexible Growth PMF ING Emeklilik A.Ş. Composite Growth PMF Allianz Yaşam ve Emeklilik A.Ş. Flexible (Tl) Group PMF Vakıf Emeklilik A.Ş. Flexible Group Participation Growth PMF Aegon Emeklilik ve Hayat A.Ş. Balanced PMF Halk Hayat ve Emeklilik A.Ş. Flexible PMF Vakıf Emeklilik A.Ş. Flexible Participation Growth PMF Garanti Emeklilik ve Hayat A.Ş. Flexible PMF Vakıf Emeklilik A.Ş. Flexible Group Income PMF Aegon Emeklilik ve Hayat A.Ş. Flexible PMF

75 2 - Pension Mutual Funds and State Contribution Funds Pension Mutual Funds (Returns in 213) Date of Public Offering Return (%) Real Return (%) Gross Real Return (Increased By Fund Management Fee) (%) Return Ranking Ranking of Gross Real Return Internal Rate of Return (%) Internal Rate of Return Ranking Garanti Emeklilik ve Hayat A.Ş. Flexible Group PMF Vakıf Emeklilik A.Ş. Flexible PMF Groupama Emeklilik A.Ş. Flexible PMF Garanti Emeklilik ve Hayat A.Ş. Flexible (Tl) PMF Ziraat Hayat ve Emeklilik A.Ş. Flexible PMF Anadolu Hayat Emeklilik A.Ş. Dynamic Flexible PMF Ergo Emeklilik ve Hayat A.Ş. Flexible Income PMF Avivasa Emeklilik ve Hayat A.Ş. Flexible Performance Growth PMF Avivasa Emeklilik ve Hayat A.Ş. Flexible Growth (Group) PMF Avivasa Emeklilik ve Hayat A.Ş. Flexible Growth PMF Allianz Yaşam ve Emeklilik A.Ş. Flexible Growth PMF Axa Hayat ve Emeklilik A.Ş. Flexible Growth PMF Anadolu Hayat Emeklilik A.Ş. Flexible Growth PMF Avivasa Emeklilik ve Hayat A.Ş. Flexible PMF Allianz Hayat ve Emeklilik A.Ş. Flexible Growth (Group) PMF Groupama Emeklilik A.Ş. Flexible Group PMF Anadolu Hayat Emeklilik A.Ş. Flexible PMF Anadolu Hayat Emeklilik A.Ş. Flexible Growth Orange PMF Ergo Emeklilik ve Hayat A.Ş. Flexible Growth PMF Ergo Emeklilik ve Hayat A.Ş. Flexible Group PMF Avivasa Emeklilik ve Hayat A.Ş. Balanced PMF Cigna Finans Emeklilik ve Hayat A.Ş. Flexible Group PMF Cigna Finans Emeklilik ve Hayat A.Ş. Flexible PMF Funds in the table are ranked by the greatness of the gross real returns. The funds offered to public in 213 are excluded from the table. 73

76 2 - Pension Mutual Funds and State Contribution Funds Returns of Pension Mutual Funds in 213 according to Fund Groups and Founder G Ratio (%) AEG - ANG AND - ATK AXA - HEK GRN - GHD HLK - HHK ING - IEB MET - MHK VKF - VEK VKF - VGB ALY - AMA ALY - AMB ALZ - AZK ALZ - AZA AND - HS1 AND - AH1 AND - AG1 AND - AHC AVI - AE2 AVI - AEK AVI - AVK CRD - BPF CRD - BPG ERG - EIG FNS - CHK GRN - GHF GRN - GKB GRN - GEK GRP - BEK GRP - BGK ING - IEG MET - MHG VKF - VGD VKF - VEC ZRT - ZHG AEG - ANS ALY - ALI ALY - AEU ALY - ALH ALZ - AZH AND - AH5 AND - AG3 AND - AHB ASY - AGH AVI - AEB AVI - AVH AVI - AEH AXA - HES CRD - BPH ERG - EIH FNS - CHH GRN - GEH GRN - GEG GRN - GHH GRP - BBH GRP - BEH HLK - HHB ING - IEH MET - MHH VKF - VEH ZRT - ZHB AEG - ANY AEG - ANE ALY - ALS ALY - AGL ALY - APG ALY - ALU ALY - AEN ALY - AMH ALY - AMN ALZ - AZY ALZ - AZB AND - AH9 AND - AH8 AND - ATE AND - AGE AND - AH AND - AG4 AND - ABE AND - AHL ASY - AGB ASY - AGG ASY - AGM AVI - AVY AVI - AVP AVI - AEG AVI - AVD AVI - AE3 AVI - AVE AXA - HEB ERG - EHG ERG - EIE ERG - EIY FNS - CHN FNS - CGE GRN - GHE GRN - GEA GRN - GEF GRN - GED GRN - GHT GRP - BEE GRP - BGE HLK - HHE ING - IEK ING - IEF ING - IEA ING - IEE MET - MHY MET - MHE VKF - VGE VKF - VES VKF - VEB VKF - VEY VKF - VEA VKF - VEE ZRT - ZHE ZRT - ZHA STD Gov't Bonds and Bills (TL) Stock Weighted average return of fund groups, are calculated by weighting with daily asset values of fund. STD: Standard Fund Group The funds offered to public in 213 are excluded from the calculations STD fund category is included funds that transform from government bonds (TL) to Standard Returns of fund groups not depicted in the above chart can be found at Flexible The table below shows 213 returns and 213 benchmark returns by companies, fund groups and sectors. Fund group returns of the companies and benchmark returns are calculated by weighting daily returns with daily net asset values. Rates indicated in the table represent companies, fund groups and sector returns. Pension Company Aegon Emeklilik ve Hayat A.Ş. Allianz Hayat ve Emeklilik A.Ş. Allianz Yaşam ve Emeklilik A.Ş. Anadolu Hayat Emeklilik A.Ş. Asya Emeklilik ve Hayat A.Ş. Avivasa Emeklilik ve Hayat A.Ş. Axa Emeklilik ve Hayat A.Ş. Cardif Emeklilik ve Hayat A.Ş. Cigna Finans Emeklilik ve Hayat A.Ş. Ergo Emeklilik ve Hayat A.Ş. Garanti Emeklilik ve Hayat A.Ş. Groupama Emeklilik A.Ş. Halk Emeklilik A.Ş. ING Emeklilik A.Ş. Metlife Emeklilik ve Hayat A.Ş. Vakıf Emeklilik A.Ş. Ziraat Emeklilik ve Hayat A.Ş. Sector The Company, Fund Group and Sectoral 12 Month Returns (Fund Group and Fund Group Benchmark Returns) Gov't Bonds and Bills (TL) (%) Flexible Stocks Gov't Bonds International Liquid (%) (%) and Bills (%) (%) (FX) (%) Standard (%) All Funds (%) Average returns the fund groups are calculated by weighting with daily asset values of funds (Light - colored bars) Average returns of the benchmark retuns of the fund groups are calculated by weighting with daily asset values of their benchmarks (Dark-colored bars) As a founder of Fiba Emeklilik ve Hayat A.Ş s funds offered to public in 213 are excluded from table Some of flexible funds are not suitable for benchmarking. For this reason sectoral returns of flexible funds are not calculated. T.6 74

77 2 - Pension Mutual Funds and State Contribution Funds Rate of Annual Returns of Pension Mutual Fund Groups by Years G.18 Gov't Bonds and Bills (TL) Liquid Flexible Balanced 1 Stocks Gov't Bonds and Bills (FX) International Individual Pension System 8 6 Returns (%) Annual nominal returns of pension mutual fund are analyzed according to fund groups. While the highest nominal return was on international fund groups with 27% in % loss occurred on flexible fund groups and 11% loss occured stock fund groups in 213 Rate of Annual Real Returns of Pension Mutual Fund Groups by Years G.19 Gov't Bonds and Bills (TL) Liquid Flexible Balanced 1 Stocks Gov't Bonds and Bills (FX) International Individual Pension System 8?? 6 Returns (%) When annual real returns of pension mutual fund are analyzed according to fund groups, the highest real return was on international fund groups with 18% in 213, the other real returns were 1% on government bonds (FX) fund groups respectively. The loss occurred 17% in stock fund groups, 8% flexible fund groups and 7% government bonds (TL) fund groups respectively. 75

78 2 - Pension Mutual Funds and State Contribution Funds Fund Groups and Alternative Investment Vehicles Returns G Return (%) Stocks BIST1 KYD Bond Indices 182 Days KYD Bond Indices 91 Days Gov't Bonds and Bills (TL) Flexible IPS KYD Eurobond Indices USD -TL KYD Eurobond Indices EURO -TL KYD Bond Indices A Type Liquid Gov't Bonds and Bills (FX) KYD Bond Indices B Type International Individual Pension System Mutual Fund Groups are marked blue for convenience. Black columns in the chart represent compound return between years Columns in the above chart represent the cumulative returns from Oct 27, 23, i.e. the starting date of the system, to Dec 31, 213. Lines on the columns indicate yearly nominal returns of fund groups and alternative investment instruments. Calculation of the yearly returns for fund groups and IPS did not include funds offered to the public during the current year, and daily fund returns were weighted with daily net asset values. Calculation of the returns from the beginning of the system, on the other hand, included the funds, as from the date they were offered to the public. The below chart indicates 213 progress of the returns of fund groups and alternative investment instruments. Returns of Fund Groups and Alternative Investment Vehicles in 213 G Gov't Bonds and Bills (TL) Gov't Bonds and Bills (FX) KYD Bond Indices All Currency Basket Flexible International BIST1 IPS Liquid Standard KYD Bond Indices 91 Days Stocks Precious Metal KYD Gold Price Indices Indices 76

79 2 - Pension Mutual Funds and State Contribution Funds Index Change Ratio of Fund Group and Alternative Investment Vehicles G Gov't Bonds and Bills (TL) / KYD Bond Indices All Stocks / BIST1 Liquid / KYD Bond Indices 91 Days International / Currency Basket Precious Metal / KYD Gold Price Indices Rate Precious Metal are offered to public in end of the April 213 and shown on graphic as of related date. Currency Basket is created 1 US Dollar +.77 Euro. Central Bank of Turkey s sales prices are used as currency rate. The graph above indicates, proportioned index of fund groups and alternative invesment vehicles created from daily returns. The below chart shows 213 returns were calculated on the basis of funds managed by fund management companies or groups covering the funds. Returns were calculated by weighting 213 returns of the funds with net asset values as of Dec 31, 213. For those funds that changed portfolio companies during the year, returns within the former company until the changeover, and returns within the new company following the changeover were calculated. Based on the Fund Group, 213 Annual Returns of Portfolio Management Companies G ?? Ratio (%) Ak Ashmore Ata Deniz Eczacıbaşı Ergo Finans Garanti Halk Hsbc ING İŞ Polsan TEB Vakıf Yapı Kredi Ziraat Ak Deniz Eczacıbaşı Ergo Finans Garanti Hsbc ING İŞ TEB Vakıf Yapı Kredi Ziraat Ak Ergo Finans Hsbc Polsan Yapı Kredi Ziraat Deniz Garanti Halk ING İŞ TEB Vakıf Ak Deniz Ergo Garanti Halk Hsbc İŞ TEB Vakıf Yapı Kredi Ziraat Flexible Stock Gov't Bonds and Bills (TL) Gov't Bonds and Bills (FX) 77

80 2 - Pension Mutual Funds and State Contribution Funds 2.6 Risk Analysis of Pension Mutual Funds In this report, Sharpe ratio has been calculated from the date on which the funds were offered to public and TKYD (Turkish Institutional Investment Managers Association) O/N net repo index is used as rate of risk free return in the calculation. Top 2 Pension Mutual Funds according to Sharpe Ratios T.7 Number 213 Number 212 Pension Mutual Funds Date Of Public Offering Average Monthly Return (%) Standard Deviation (m) (%) 213 Sharpe Ratio (m) 212 Sharpe Ratio (m) 1 3 Cigna Finans Emeklilik Ve Hayat A.Ş. Stock Growth PMF Ergo Emeklilik Ve Hayat A.Ş. Stock Growth PMF Ergo Emeklilik Ve Hayat A.Ş. Flexible Growth PMF ING Emeklilik A.Ş. Flexible Growth PMF Garanti Emeklilik Ve Hayat A.Ş. Stocks Group PMF Axa Hayat Ve Emeklilik A.Ş. Socks Growth PMF Ziraat Hayat Ve Emeklilik A.Ş. Gov't Bonds And Bills (Fx) Income PMF Allianz Yaşam Ve Emeklilik A.Ş. Pera A Flexible Group PMF Metlife Emeklilik Ve Hayat A.Ş. Flexible Group PMF Allianz Yaşam Ve Emeklilik A.Ş. Pera Y Flexible Group PMF Anadolu Hayat Emeklilik A.Ş. Gov't Bonds And Bills Income Group PMF Allianz Yaşam Ve Emeklilik A.Ş. Gov't Bonds And Bills Group Income PMF Avivasa Emeklilik Ve Hayat A.Ş. Flexible Income PMF Anadolu Hayat Emeklilik A.Ş. Flexible Growth PMF Allianz Hayat Ve Emeklilik A.Ş. Composite Bonds And Bills (Fx) Income (Group) PMF Groupama Emeklilik A.Ş. Gov't Bonds And Bills (Fx) PMF Allianz Hayat Ve Emeklilik A.Ş. Gov't Bonds And Bills Income (Group) PMF ING Emeklilik A.Ş. Composite Growth PMF Aegon Emeklilik Ve Hayat A.Ş. Stock Income PMF Groupama Emeklilik A.Ş. Gov't Bonds And Bills Income Group PMF (m) These calculations are based on the monthly average returns. The calculations are from the date on which funds are offered to public. Sharpe ratio for funds offered to public before 24 months are not calculated. Sharpe ratio is used as the sort key. 78

81 2 - Pension Mutual Funds and State Contribution Funds Markets Indexes Used for Fund Groups Liquid Funds KYD Bond Indices 91 Days Flexible Funds Weighted Average Return of Related Fund Group Stock Funds ISE-1 Gov't Bonds and Bills (TL) KYD Bond Indices All Standard Funds KYD Bond Indices All 1% KYD O/N Indices Gross Gov't Bonds and Bills (FX) 6% KYD DIBS Indices USD - TL 3% KYD DIBS Indices EUR - TL Calculation methods of alpha and beta coefficients of the pension mutual funds that was given on the following tables and sharpe ratios shown on the table on the left, with painted columns, can be found at the following address Abbreviations of Pension Companies AEG: Aegon Emeklilik ve Hayat A.Ş. AVI: Avivasa Emeklilik ve Hayat A.Ş. FNS: Cigna Finans Emeklilik ve Hayat A.Ş. MET: Metlife Emeklilik ve Hayat A.Ş. ALY: Allianz Yaşam ve Emeklilik A.Ş. AXA: Axa Emeklilik ve Hayat A.Ş. GRN: Garanti Emeklilik ve Hayat A.Ş. VKF: Vakıf Emeklilik A.Ş. ALZ: Allianz Hayat ve Emeklilik A.Ş. CRD: Cardif Emeklilik ve Hayat A.Ş. GRP: Groupama Emeklilik A.Ş. ZRT: Ziraat Emeklilik ve Hayat A.Ş. AND: Anadolu Hayat Emeklilik A.Ş. ERG: Ergo Emeklilik ve Hayat A.Ş. HLK: Halk Emeklilik A.Ş. IPS: Individual Pension System ASY: Asya Emeklilik ve Hayat A.Ş. FBA: Fiba Emeklilik ve Hayat A.Ş. ING: ING Emeklilik A.Ş. Abbreviations of Fund Groups SCN: State Contribution Fund Group FLX: Flexible Fund Group STC: Stocks Fund Group PM: Precious Metal Fund Group GTL: Gov't Bonds and Bills (TL) Fund Group GFX: Gov't Bonds and Bills (FX) Fund Group LQD: Liquid Fund Group STD: Standard Fund Group INT: International Fund Group 79

82 2 - Pension Mutual Funds and State Contribution Funds Pension Mutual Funds with Positive Alpha Coefficient (Except International Funds) T.8 Number 213 Number 212 Pension Mutual Funds Fund Group Date Of Public Offering Average Monthly Return (%) 1 - Garanti Emeklilik Ve Hayat A.Ş. Stocks Group PMF Stocks Anadolu Hayat Emeklilik A.Ş. Flexible Growth PMF Flexible Ergo Emeklilik Ve Hayat A.Ş. Stock Growth PMF Stocks Cigna Finans Emeklilik Ve Hayat A.Ş. Stock Growth PMF Stocks Vakif Emeklilik A.Ş. Flexible Group Participation Growth PMF Flexible ING Emeklilik A.Ş. Flexible Growth PMF Flexible ING Emeklilik A.Ş. Composite Growth PMF Flexible Metlife Emeklilik Ve Hayat A.Ş. Flexible Group PMF Flexible Ergo Emeklilik Ve Hayat A.Ş. Flexible Growth PMF Flexible Anadolu Hayat Emeklilik A.Ş. Stock Growth Group PMF Stocks Ergo Emeklilik Ve Hayat A.Ş. Flexible Group PMF Flexible Anadolu Hayat Emeklilik A.Ş. Stock Growth White PMF Stocks Avivasa Emeklilik Ve Hayat A.Ş. Flexible Growth (Group) PMF Flexible Allianz Yaşam Ve Emeklilik A.Ş. Flexible Growth PMF Flexible Vakif Emeklilik A.Ş. Flexible Participation Growth PMF Flexible Allianz Yaşam Ve Emeklilik A.Ş. Flexible (TL) Group PMF Flexible Aegon Emeklilik Ve Hayat A.Ş. Stock income PMF Stocks Axa Hayat Ve Emeklilik A.Ş. Socks Growth PMF Stocks Allianz Yaşam Ve Emeklilik A.Ş. Pera A Flexible Group PMF Flexible Avivasa Emeklilik Ve Hayat A.Ş. Stock Growth PMF Stocks Anadolu Hayat Emeklilik A.Ş. Emerging Countries Flexible Growth PMF Flexible Allianz Yaşam Ve Emeklilik A.Ş. Pera Y Flexible Group PMF Flexible Garanti Emeklilik Ve Hayat A.Ş. Stocks PMF Stocks Avivasa Emeklilik Ve Hayat A.Ş. Stock Growth Group PMF Stocks Anadolu Hayat Emeklilik A.Ş. Stock Growth PMF Stocks Allianz Yaşam Ve Emeklilik A.Ş. Stock Growth PMF Stocks Garanti Emeklilik Ve Hayat A.Ş. Flexible (TL) PMF Flexible ING Emeklilik A.Ş. Stock Growth PMF Stocks Metlife Emeklilik Ve Hayat A.Ş. Flexible PMF Flexible Allianz Yaşam Ve Emeklilik A.Ş. Flexible PMF Flexible Garanti Emeklilik Ve Hayat A.Ş. Flexible Group PMF Flexible Anadolu Hayat Emeklilik A.Ş. Flexible PMF Flexible Avivasa Emeklilik Ve Hayat A.Ş. Flexible income PMF Flexible ING Emeklilik A.Ş. Flexible PMF Flexible Anadolu Hayat Emeklilik A.Ş. Flexible Growth Orange PMF Flexible Groupama Emeklilik A.Ş. Stock Growth Group PMF Stocks Allianz Hayat Ve Emeklilik A.Ş. Flexible Growth PMF Flexible Avivasa Emeklilik Ve Hayat A.Ş. Gov't Bonds And Bills income Group PMF Gov't (FX) Ziraat Hayat Ve Emeklilik A.Ş. Stock Growth PMF Stocks Anadolu Hayat Emeklilik A.Ş. Flexible income Group PMF Flexible Anadolu Hayat Emeklilik A.Ş. Gov't Bonds And Bills income Group PMF Gov't (TL) Allianz Yaşam Ve Emeklilik A.Ş. Pera H Flexible Group PMF Flexible Anadolu Hayat Emeklilik A.Ş. Alternative Flexible income PMF Flexible Allianz Hayat Ve Emeklilik A.Ş. Composite Bonds And Bills (FX) income (Group) PMF Gov't (FX) Allianz Hayat Ve Emeklilik A.Ş. Gov't Bond And Bills income (FX) PMF Gov't (FX) Aegon Emeklilik Ve Hayat A.Ş. Balanced PMF Flexible Beta (m) 213 Alpha (m) (%) 212 Alpha (m) (%) (m) These calculations are based on the monthly average returns. The abbreviations used for Pension Fund groups given on page 79. The calculations are from the date on which funds are offered to public. Alpha and Beta Coefficients for funds offered to public before 24 months are not calculated and are excluded from ratings. Funds in the table are ranked by the greatness of the alpha coefficients. 8

83 2 - Pension Mutual Funds and State Contribution Funds 2.7 State Contribution Funds State Contribution Funds Data As of 213 year end, there has been 24 state contribution funds and 7 of these funds are alternative*. State contribution funds owned 4.39% of pension mutual funds included total net asset. Nominal return rate of the state contribution funds from the date of public offering is -4% at Fund Group Number of Funds Net Asset Value (TL) State Contribution Other TOTAL * These funds can only invest interest-free investment vehicles. Regarding state contribution funds are provided below, as of December 31, 213. T.9 Pension Mutual Funds Date Of Public Offering Net Asset Value (TL) Nominal Return (%) Average Monthly Return (m) (%) Standard Deviation (m) (%) Net Asset Values of State Contribution Funds according to Founders Aegon Emeklilik Ve Hayat A.Ş. Contribution Fund ,372, Allianz Hayat Ve Emeklilik A.Ş. Contribution Fund ,81, Allianz Yaşam Ve Emeklilik A.Ş. Contribution Fund ,496, Anadolu Hayat Emeklilik A.Ş. Contribution Fund ,973, Anadolu Hayat Emeklilik A.Ş. Alternative Contribution Fund ,848, Asya Emeklilik Ve Hayat A.Ş. Alternative Contribution Fund ,769, Avivasa Emeklilik Ve Hayat A.Ş. Contribution Fund ,796, Axa Hayat Ve Emeklilik A.Ş. Contribution Fund ,86, Axa Hayat Ve Emeklilik A.Ş. Alternative Contribution Fund , Bnp Paribas Cardif Emeklilik A.Ş. Contribution Fund ,537, Cigna Finans Emeklilik Ve Hayat A.Ş. Contribution Fund ,766, Ergo Emeklilik Ve Hayat A.Ş. Contribution Fund ,576, Fiba Emeklilik Ve Hayat A.Ş. Contribution Fund , Garanti Emeklilik Ve Hayat A.Ş. Contribution Fund ,596, Garanti Emeklilik Ve Hayat A.Ş. Alternative Contribution Fund ,781, Groupama Emeklilik A.Ş. Contribution Fund ,55, Halk Hayat Ve Emeklilik A.Ş. Contribution Fund ,4, Halk Hayat Ve Emeklilik A.Ş. Alternative Contribution Fund , ING Emeklilik A.Ş. Contribution Fund ,781, Metlife Emeklilik Ve Hayat A.Ş. Contribution Fund ,233, Vakıf Emeklilik A.Ş. Contribution Fund ,619, Vakıf Emeklilik A.Ş. Alternative Contribution Fund ,65, Ziraat Hayat Ve Emeklilik A.Ş. Contribution Fund ,328, Ziraat Hayat Ve Emeklilik A.Ş. Alternative Contribution Fund , (m) These calculations are based on the monthly average returns. The calculations are from the date on which funds are offered to public. Company names is used as the sort key. 81

84 2 - Pension Mutual Funds and State Contribution Funds Total Net Asset Values of State Contribution Funds according to Founder G Net Asset Value (TL Million) Net Asset Value (TL Million) GRP ERG AEG AXA FBA Pension Companies 4 AND AVI GRN ALY VKF ING CRD ZRT ALZ HLK ASY FNS MET Pension Companies Chart rankings, the total net asset value of the company is made according to the size. The graph above indicates total net asset values of state contribution funds according to founder as of December 31, 213. The Basis of the Portfolio Limitations of State Contribution Funds State Contribution Funds can invest as shown table below according to the legal framework. T.1 Asset Class Min (%) Max (%) Government Bonds (TL), Revenue Sharing Bonds or Lease Certificate issued by Undersecretaries of Treasury 75 1 Turkish Lira Denominated; Deposit, Participation Account, traded in the stock market with the proviso bonds issued by banks or Lease Certificate issued by the bank s subsidiary leasing companies 15 BIST 1 Index or BIST Participation Index Shares 15 Reverse Repo and Takasbank Money Market Operations 1 82

85 2 - Pension Mutual Funds and State Contribution Funds The graph below shown that average portfolio allocation according to founder. When calculating portfolio allocation, founders funds daily asset values are weighted with net asset values and annual averages calculated for every investment vehicle according to the founder. Funds offered to public in 213 are included in the calculations. Asset Allocation of State Contribution Funds according to Founder(%) G.25 Gov't Bonds and Bills (TL) Stocks Gov't Bonds and Bills (FX) Takasbank Money Market Foreign Securities Reverse Repo Private Sector Bonds and Bills Other AEG ALY ALZ AND ASY AVI AXA CRD ERG FBA FNS GRN GRP HLK ING MET VKF ZRT IPS Pension Companies Ratios less than 2% are not used for the graphic data tag. G Ratio (%) The graph below provides index state contribution funds returns weighted daily assets. As shown on graph, state contribution funds daily net asset weighted return from the date to the end of the year is around -4%. State Contribution Return Index Index 83

86 2 - Pension Mutual Funds and State Contribution Funds Return Index of State Contribution Funds according to Founder and Fund G AEG - AEY ALY - AMF ALZ - AZT AND - AER AND - AET ASY - AGT AVI - AEI AXA - HER AXA - HET CRD - BNK ERG - EDK FBA - FEI FNS - CHT GRN - GHI GRN - GHL GRP - GRK HLK - HHA HLK - HHT ING - IGE MET - MHT VKF - VEI VKF - VER ZRT - ZHK ZRT - ZHT Sektör Index Funds offered to public in 213 are included in the calculations. The chart above indicates detail of state contribution funds according to founder from the date of public offering. Index Change of Fund Groups G.28 Index Gov't Bonds and Bills (TL) Gov't Bonds and Bills (FX) Flexible Liquid International State Contribution Standard Precious Metal IPS (with State Contribution) IPS (without State Contribution) Stocks The chart above shows fund group return indexes from the public offering date of state contribution funds and related data generated from daily fund group returns. 84

87 2 - Pension Mutual Funds and State Contribution Funds The graph below is formed with state contribution fund group return index compared to other fund groups returns, in order to examine performance of state contribution funds return according to other fund groups. Ratio of State Contribution Fund Group Return to Other IPS Fund Group Returns G.29 Rate 1,26 1,24 1,22 1,2 1,18 1,16 1,14 1,12 1,1 1,8 1,6 1,4 1,2 1,,98,96,94,92,9,88,86,84,82,8,78,76, State Contribution / Gov't Bonds and Bills (TL) State Contribution / Stocks State Contribution / Precious Metal State Contribution / Liquid State Contribution / International State Contribution / Gov't Bonds and Bills (FX) State Contribution / Standard State Contribution / Flexible Management Fees of Pension Mutual Funds and State Contribution Funds Fund management fee ratios are calculated by weighting with net asset value of funds. This report disregards bonus implementations related to fund management fees, included in certain pension schemes. For expenses relative to fund, included management fee, maximum ratios are shown on the table below. T.11 Group Pension Mutual Funds Maximum daily fund total fee ratio (.%) Maximum annual fund total fee ratio (%) I Money Market Funds II Liquid Fund-Gov t, Liquid Fund-Private Sector, Liquid Fund-Mixed, other funds etc. Government / Private Sector / International Bonds Funds/ Precious Metals/ Index Funds Gov t Bonds Fund, Private Sector Bonds Fund, Mixed Bonds Fund, International Bonds Fund, Precious Metals Fund, Gold Fund, Index Fund, Balance Fund, other funds etc III Stocks / Other Funds Stocks Funds, International Stocks Funds, Small Companies Stock Funds, Foreign Country Funds, Sector Funds, Flexible Fund, Mixed Fund, International Mıxed Fund, Fund Basket Funds, other funds etc. IV State Contribution Funds

88 2 - Pension Mutual Funds and State Contribution Funds Development of Average Monthly Fund Management Fee Ratios according to Fund Groups G.3 7,5 Gov't Bonds and Bills (TL) Gov't Bonds and Bills (FX) State Contribution Liquid International Individual Pension System Flexible Standard Stocks Precious Metal 7, 6,5 6, 5,5 5, 4,5 4, 3,5 3, 2,5 2, 1,5 1,, Daily Fund Management Fee Ratio (.%) Change of monthly averages for fund management fees on fund groups and founder basis by years can be found at the following address Pension Mutual Funds and State Contribution Funds Data List of Pension Mutual Funds and State Contribution Funds and their data as of 213 year-end can be found at the following address; Disclaimer for the Analysis of Pension Mutual Funds and State Contribution Funds Pension Mutual Funds and State Contribution Funds are managed by portfolio managers in the portfolio management companies. Even though the success of the fund depends directly on the performance of the fund manager, this report compares the performance of the funds within a given period rather than that of the fund managers. Since the calculations are based on historical data, the results cannot be regarded as indicators for the following year s performance and it neither reflects the change of management nor measures the skills of managers. Pension mutual funds have long term investment strategy. Therefore, assessing the future performance of the pension mutual funds and state contribution funds by analyzing the performance of the year 213 may not lead to exact results. There are several generally accepted methods that can be utilized in assessing the performance of pension mutual funds. However, since each method differs in terms of the perspective, it is not justifiable to compare only the results. In this report, some of the generally-accepted methods are used and the outputs are assessed to inform the reader. 86

89 2 - Pension Mutual Funds and State Contribution Funds 87

90 88

91 Realizations in 213, Sectoral Expectations for Realizations in Sectoral Expectations Fon 214

92 3 - Realizations in 213, Sectoral Expectations for Realizations in 213 Consolidated 213 expectations of pension companies and actual figures as of 213 year-end, are presented in the following table. Consolidated Targets and Realizations of Pension Companies for 213 Number of Contracts Pessimistic Most Probable Optimistic Realizations at the end of 213 Number of New Contracts to be Established within the Year 1,259,845 1,424,611 1,598,916 1,658,785 Number of Contracts in Force at the Year-End 4,122,265 4,383,343 4,674,586 4,687,675 Number of Participants Number of New Participants within the Year 1,136,231 1,282,786 1,436,83 1,523,49 Total Number of Participants at the Year-End 3,77,719 3,945,73 4,24,116 4,153,55 Number of Groups and Group Pension Contracts (Total Numbers at the Year-end) Number of Employee s Groups 22,776 24,547 26,819 15,33 Number of Noncontributory Groups 8,493 9,345 1,444 9,264 Number of Contracts in Employee s Groups 894,19 955,71 1,12, ,85 Number of Contracts in Noncontributory Groups 252,48 272,89 295,56 283,915 Number of Participants in Group Pension Contracts 959,852 1,23,35 1,92,655 1,12,767 Total Amount of Contributions Net Contributions from Sponsors in Noncontributory Contracts within the Year (TL) Net Contributions from Individual Participants within the Year (TL) 6,893,995 7,738,344 8,674,45 88,79, ,447, ,991, ,148, ,197,625 Net Cumulative Amount of Contributions at the Year-End (TL) 1,461,75,62 1,665,946,923 1,85,226,224 2,91,671,592 Total Amount to be Invested (Total Amount at the Year-End) (TL) 213 Net Contribution Amount (Net Yearly Collection Amount to be Reached by the Year-End) (TL) 3,76,496,868 4,241,164,2 4,642,75,56 4,498,126,879 4,97,2,85 5,424,17,764 5,92,255,72 5,371,47,326 Total Amount of Funds Net Cumulative Amount of Funds at the Year-End (TL) 25,31,867,3 26,94,84,295 28,388,88,896 25,145,718,418 Transfers from Provident Funds (1) Expected Number of Provident Fund Participants to Transfer within the Year 6,647 72,15 93,53 6 Expected Amount of Accumulations to be Transferred (TL) 389,26, 522,95, 748,97, 1,5,658 Transfer of Pension Accounts Among Pension Companies (Total Amount at the Year-End) (2) Number of Contracts to be Transferred 293,373 36, ,35 166,337 Amount of Transfers (TL) 2,67,843,219 2,89,318,147 2,952,298,65 1,921,242,6 Withdrawals (Total Amount at the Year End) Expected Number of Participants to Withdraw 1,979,892 2,67,556 2,155,366 2,125,816 Expected Amount of Accumulations to be Withdrawn (TL) 7,684,649,638 8,94,36,251 8,512,68,15 8,941,94,514 Retirement (Total Amount at the Year End) (3) Expected Number of Participants to Retire 6,11 6,796 7,449 7,577 Expected Amount of Accumulations related to Retired Participants (TL) 3,794,151 34,584, ,414, ,812,2 Intermediaries Number of Intermediaries to be Newly Employed within the Year 4,449 5,235 5,844 11,757 Number of Intermediaries to Quit within the Year 1,84 2,132 2,392 4,994 Total Number of Intermediaries at the Year-End 18,757 19,216 19,564 26,639 (1) These include funds from associations, foundations, provident funds and other organizations with retirement provisions (2) The merged contracts in different companies as well as the contracts transferred to another company are included (3) Retirement includes the programmed withdrawals, as well as the lump-sum payments 9

93 3 - Realizations in 213, Sectoral Expectations for Sectoral Expectations for 214 This section presents survey results applied to pension companies that contain their targets and sectoral expectations for 214. The following table illustrates the minimum, maximum and the average figures related to several quantities regarding the individual pension system, based on the pessimistic, most probable and optimistic expectations of the pension companies. Expectations Regarding Number of Participants, Amount of Contributions and Accumulations for the Year 214 Pessimistic Minimum Arithmetic Mean Maximum Number of New Participants within the Year 6, 1,216,645 1,935,612 Total Number of Participants at the Year-End 4,194,11 4,512,217 5,558,67 Net Cumulative Amount of Contributions at the Year-End (TL) 3,265,635,883 5,643,943,938 8,247,3, Cumulative Amount of Accumulations at the Year-End (TL) 26,436,49,28 29,94,142,128 35,,, Net Cumulative Amount of State Contribution Funds at the Year-End (TL) 1,216,74,824 2,355,281,731 2,82,, Most Probable Minimum Arithmetic Mean Maximum Number of New Participants within the Year 75, 1,378,642 2,15,68 Total Number of Participants at the Year-End 4,537, 4,812,944 6,176,3 Net Cumulative Amount of Contributions at the Year-End (TL) 3,965,5, 6,42,749,669 8,652,9, Cumulative Amount of Accumulations at the Year-End (TL) 26,552,625,936 31,617,379,424 4,,, Net Cumulative Amount of State Contribution Funds at the Year-End (TL) 1,294,614,228 2,587,28,16 3,133,333,333 Optimistic Minimum Arithmetic Mean Maximum Number of New Participants within the Year 792, 1,565,678 2,674,467 Total Number of Participants at the Year-End 4,68, 5,299,417 6,793,93 Net Cumulative Amount of Contributions at the Year-End (TL) 4,253,9, 7,37,615,811 8,923,3, Cumulative Amount of Accumulations at the Year-End (TL) 27,63,832,11 33,619,876,36 45,,, Net Cumulative Amount of State Contribution Funds at the Year-End (TL) 1,35,82,393 2,834,631,345 3,446,666,667 91

94 3 - Realizations in 213, Sectoral Expectations for 214 The first section of the following table, Consolidated Targets of Pension Companies, contains the sum of pension companies targets regarding different quantities in the individual pension system. Consolidated Targets of Pension Companies Number of Contracts Pessimistic Most Probable Optimistic Number of New Contracts to be Established within the Year 1,661,724 1,922,37 2,193,89 Number of Contracts in Force at the Year-End 5,637,634 6,89,127 6,58,91 Number of Participants Number of New Participants within the Year 1,461,427 1,698,722 1,928,75 Total Number of Participants at the Year-End 4,981,3 5,413,62 5,769,52 Number of Groups and Group Pension Contracts (Total Numbers at the Year-end) Number of Employee s Groups 13,79 14,259 15,83 Number of Noncontributory Groups 11,292 13,16 15,347 Number of Contracts in Employee s Groups 992,858 1,94,817 1,24,458 Number of Contracts in Noncontributory Groups 319, ,86 399,859 Number of Participants in Group Pension Contracts 1,59,259 1,141,44 1,236,288 Total Amount of Contributions Net Contributions from Sponsors in Noncontributory Contracts within the Year (TL) 99,261, ,394, ,67,974 Net Contributions from Individual Participants within the Year (TL) 596,278,61 638,478, ,721,381 Net Cumulative Amount of Contributions at the Year-End (TL) 2,87,99,61 3,141,895,967 3,438,175,43 Total Amount to be Invested (Total Amount at the Year-End) (TL) 9,336,27,919 9,989,121,383 1,676,24, Net Contribution Amount (Net Yearly Collection Amount to be Reached by the Year-End) (TL) 7,779,515,356 8,585,386,711 9,431,339,441 Total Amount of Funds Net Cumulative Amount of Contributions at the Year-End (TL) 32,533,6,243 34,744,747,93 37,37,278,994 Net Cumulative Amount of State Contribution at the Year-End (TL) 2,412,983,667 2,658,91,786 4,26,22,49 Transfers from Provident Funds (1) Expected Number of Provident Fund Participants to Transfer within the Year 32,693 39,375 46,478 Expected Amount of Accumulations to be Transferred (TL) 1,31,744,4 1,684,456, 2,219,367,6 Transfer of Pension Accounts Among Pension Companies (Total Amount at the Year-End) (2) Number of Contracts to be Transferred 261,67 276, ,679 Amount of Transfers (TL) 2,834,172,834 2,997,816,385 3,175,756,135 Withdrawals (Total Amount at the Year-End) Expected Number of Contracts to Withdraw 2,483,829 2,69,77 2,737,275 Expected Amount of Accumulations to be Withdrawn (TL) 9,748,681,492 1,352,74,145 1,958,686,726 Retirement (Total Amount at the Year-End) (3) Expected Number of Participants to Retire 14,67 15,31 16,736 Expected Amount of Accumulations related to Retired Participants (TL) 663,299, ,563, ,515,419 Intermediaries Number of Intermediaries to be Newly Employed within the Year 7,17 8,455 9,65 Number of Intermediaries to Quit within the Year 1,93 2,342 2,82 Total Number of Intermediaries at the Year-End 17,299 18,425 19,59 State Contribution Total Amount of the State Contribution Paid to IPS Accounts of Participants during the Year (TL) Number of Unique Participants Receiving State Contribution to be Reached by the Year-End (Cumulative) 1,532,35,316 1,677,81,422 1,859,758,23 3,33,58 3,542,535 3,798,861 (1) These include funds from associations, foundations, provident funds and other organizations with retirement provisions (2) The merged contracts in different companies as well as the contracts transferred to another company are included (3) Retirement includes the programmed withdrawals, as well as the lump-sum payments 92

95 3 - Realizations in 213, Sectoral Expectations for 214 The second section depicts the means of expectations of the pension companies about the sector for 214. Finally, the third section gives the extreme values as well as standard deviation and median for most probable sectoral expectations of pension companies. Sectoral Expectations of Pension Companies (Arithmetic Mean) Analysis of Most Probable Sectoral Expectations Pessimistic Most Probable Optimistic Minimum Maximum Standard Deviation Median 1,353,994 1,527,147 1,732,988 9, 2,337, ,513 1,433,551 5,23,631 5,515,775 5,851,199 5,9,75 6,24, ,735 5,45, 1,216,645 1,378,642 1,565,678 75, 2,15,68 428,537 1,3,13 4,722,668 5,22,69 5,299,417 4,537, 6,176,3 433,56 4,96,283 15,982 17,52 18,369 9, 32, 5,69 16,7 9,892 1,958 11,971 7,18 2, 3,466 9,515 1,67,814 1,162,871 1,285, ,95 2,1, 273,26 1,19,9 353, ,933 48,82 293,61 593,25 14, , 1,69,877 1,145,182 1,251,383 2, 1,857, ,11 1,127,48 9,68,319 99,51,94 111,62,212 49,785,84 179,265,13 27,868,359 91,18,2 394,165, ,796, ,828,158 13,74,424 1,72,4, 474,288,63 266,246,578 2,685,678,763 3,9,438,983 3,48,56,821 2,275,, 5,67,621,72 782,636,639 2,75,, 4,833,365,498 5,287,795, ,54,13,858 3,85,, 7,572,1, 1,119,25,96 5,127,951,839 5,643,943,938 6,42,749,669 7,37,615,811 3,965,5, 8,652,9, 1,27,566,575 6,139,742,72 29,94,142,128 31,617,379,424 33,619,876,36 26,552,625,936 4,,, 2,734,934,141 3,913,148,789 2,17,178,77 2,294,78,394 2,51,424,28 1,294,614,228 3,133,333, ,2,418 2,4,, 5,721 7,142 8, , 9,34 3,17 445,726, ,93, ,195,318 1,5,658 2,,, 639,898,646 5,, 23, , ,469 17, 379,438 53,157 23,698 2,131,847,169 2,44,982,925 2,715,686,216 1,19,, 4,416,72, ,433,35 2,45,863,58 3,189,42 3,41,634 3,719,719 3,, 3,818,2 238,335 3,43, 1,828,126,61 11,712,557,889 12,75,98,514 9,181,296,9 16,74,5, 2,76,611,147 11,319,67,854 15,371 17,116 19,278 8,333 52, 13,685 1,524 79,22,72 722,456, ,42,343 65,, 91,624,562 13,736,41 669,1, 7,833 9,14 1,572 2,5 16,483 3,81 8,233 4,499 5,145 5,841 1, 8,1 1,959 5,25 28,51 3,655 32,919 24, 39,11 3,594 3,817 1,48,494,627 1,642,997,46 1,852,478,17 1,92,596,38 2,3,, 35,77,59 1,5,, 3,153,377 3,499,127 3,864,17 2,827,714 5,61, ,925 3,394,538 93

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97 Amendments in the Legal Framework 44.1 Amendments in the Legal Framework