Garanti Asset Management

Mutual Fund Management

In 2007, the mutual fund market expanded 20%, from around YTL 22 billion to YTL 26 billion. During the same period, the volume of mutual funds managed by Garanti Asset Management increased 37%, from YTL 2.7 billion to YTL 3.7 billion.

Pension Fund Management

With regard to pension funds, one of the fastest-growing investment products, the market grew 64% in 2007, from YTL 2.8 billion to YTL 4.6 billion. During the same period, the volume of pension funds managed by Garanti Asset Management increased faster than the market average, by a massive 90%, from YTL 296 million to YTL 562 million.

Discretionary Portfolio Management

2007 was a fruitful year for Discretionary Portfolio Management. According to December data published by the Capital Markets Board, the discretionary portfolio management market grew 12.5%, from YTL 1.6 billion to YTL 1.8 billion. Garanti Asset Management’s business volume increased 122% in this period, from YTL 235 million to YTL 524 million, much faster than the market average. Garanti Asset Management closed the year as a leader in discretionary portfolio management.

Activities in 2007

Garanti Asset Management manages fifteen mutual funds for Garanti Bank, three mutual funds for Garanti Securities, ten pension funds for Garanti Pension and the assets of Garanti Investment Trust. As of the end of the year, total assets under management in mutual and pension funds amounted to YTL 4.2 billion.

In 2007, Garanti Asset Management organized 15 mutual fund courses for 450 bank employees, also providing a post-training information/support network. Furthermore, seven regional meetings were held in Istanbul, Ankara, Adana, Izmir, Antalya and Bursa, where regional managers, branch managers and branch sales personnel were given information on mutual funds and pension funds. 2,000 Garanti employees received field information support in this way.

During the year, 75 individual and 30 corporate clients were visited for the purpose of promoting asset management products. Existing customers were visited at the end of the performance period and kept up-to-date on their portfolios and on expectations from the coming period.

In March 2008, Capital Markets Board of Turkey has approved Garanti Bank’s first hedge fund. Guaranteed Fund and Capital Protected Fund have also been approved and are expected to be launched in the early second half of the year.

Future Outlook

Garanti Asset Management will remain the first choice of customers in 2008, displaying a performance worthy of the Garanti brand. In this context, the company aims to increase its market share and solidify its position by using efficient delivery channels and launching new products.