Headline: "CMB Chairman Gönül: The Size of Funds Managed by Portfolio Management Companies Exceeds 6 Trillion Lira"

Forex - The Chairman of the Capital Markets Board (CMB), Ibrahim Ömer Gönül, spoke at the 4th Portfolio Management Summit organized by the Association of Institutional Investors of Turkey (TKYD) in Istanbul. Gönül emphasized that institutional investors make the greatest contribution to the orderly growth of the entire capital market, highlighting the importance of these investors in ensuring that transactions occur swiftly and smoothly, as well as increasing market depth.

He noted that 2024 will be a very important year for institutional investors, stating that as of November, the savings level in securities investment funds and pension investment funds reached 5.1 trillion lira, and the total portfolio size managed by 69 portfolio management companies exceeded 6 trillion lira. Gönül remarked that the number of investors in all investment funds is around 5.4 million, explaining that in 2024, securities investment funds and pension investment funds, along with venture capital investment funds and real estate investment funds, are expected to grow similarly.

Gönül stated, "Especially real estate and investment funds, including project real estate investment funds, have recorded a 100 percent growth compared to the same period last year. This is seen as a success for all of us."

• "Total transaction volumes reached 5 trillion lira on TEFAS and 45 billion lira on BEFAS" Ibrahim Ömer Gönül pointed out that the sizes of funds focusing on green, sustainable, and social issues are increasing every day, stating that as of November, the total market value of institutional investors focused on renewable energy and social areas approached 28.2 billion lira. He mentioned that there are 60 sustainability-themed securities investment funds, stating, "Our two important platforms in this area, TEFAS and BEFAS, are performing quite successfully and continue to operate beautifully thanks to you. The total transaction volumes of these funds reached 5 trillion lira on TEFAS and 45 billion lira on BEFAS."

• Regulations implemented during the year affecting institutional investors CMB Chairman Gönül provided information that taking into account sector demands and needs encountered in practice, many important regulations affecting institutional investors were implemented this year. He reported that they have implemented responsible management principles known as "stewardship" worldwide to protect investors' rights and interests and increase transparency in the management process.

Recalling that they published Responsible Management Principles on February 16 to guide portfolio management companies, Gönül stated that on November 21, they established the reporting standard that will be based on the reporting of applications related to these principles, including all regulations on the subject under the Responsible Management Principles Guide. Gönül mentioned that they provided standard funds with the ability to invest in venture capital investment funds to play a more effective role in financing venture capital investments, saying, "We made changes to the Communiqué on the Principles Regarding Investment Funds to simplify and conduct the application processes for free funds more effectively."

He expressed that they have implemented the necessary regulations for the establishment of project real estate investment funds, stating, "Venture capital investment funds, which are an important investment vehicle for financing venture capital investments, continue to grow rapidly and are increasingly deepening in our country's capital markets. We have also made changes in the Communiqué on Venture Capital Investment Funds. We will continue to guide you on this issue with clarifications soon."

Gönül mentioned the Financial Literacy Platform launched this year, saying that this platform would provide significant contributions to the sector and management companies operating in the sector.

CMB Chairman Gönül answered questions from the press Speaking at the 4th Portfolio Management Summit organized by TKYD in Istanbul, Gönül responded to questions from the press during his exit. Regarding whether the ban on short selling would be lifted, Gönül said, "Our efforts are ongoing. We plan to determine this and implement it before the beginning of the year. God willing, it will be on time. We continue to gather opinions from the sector on this matter."

In response to whether its medium-term arrival would cause any issues, Gönül stated, "We are discussing this with the entire sector. It would be wrong to take a step without obtaining the sector's opinion on this matter. We are in talks with them. We will make the necessary changes at the appropriate time."

In response to a question about whether they have worked on the index, asking if it will be BIST 30 or BIST 50, Gönül emphasized that they discuss everything with the sector, stating that they will not take any steps without a consensus.

• New public offerings are expected in December In response to whether new public offerings would occur in December, Ibrahim Ömer Gönül stated, "We are expecting them. (How many will there be?) It would be wrong to specify a number there. We will consider it based on the completion of the files and the demands of companies."

When asked about how 2025 would look for public offerings, Gönül replied, "The demand for public offerings is quite high, as it was last year. The demand here is likely to continue. We plan to continue public offerings according to market conditions."

Regarding how he interprets the departure of large airline companies from the participation index, Gönül explained, "The conditions for the participation index are determined by the Stock Exchange's own study. We are only providing support there. The stock exchange makes this assessment based on those standards."