Message From The Chairman

Dear Shareholders,

A very though 2015 year is left behind.  The milestones in foreign politics were the negative reflections of the ongoing civil war in Syria and the repercussions of the downing of the Russian jet. The double general elections in June and November and the rise of terrorist acts in between the elections kept political uncertainty and tension high in Turkey; dragging down business activities in many of the sectors.  The emergence of a single AKP government in November finally turned expectations to positive at the very end of the year.  As for the economy, surprise of 2015 was the continuous decline in the price of oil amidst fears surrounding the pace of global economic recovery with China at the center. Nonetheless, such a trend kept Turkey’s current account deficit and inflation tame.  Uncertainties throughout 2015 on the timing of a Fed rate hike kept volatility high, especially in 2H15 that started to dry up portfolio flows to emerging markets including Turkey.  Fed marked 2015 after eight years of staying put and started its tightening cycle in December with a 25 bp rate hike.    

2016 started on a good note amidst the unexpectedly strong decline in the price of oil which could put further downwards pressure on Turkey’s structurally problematic current account deficit and inflation rate.  Further optimism was fueled by the expectation that the strong AKP government would finally proceed with economic reforms given no further elections was in sight for the next four years.  However, the ambition to replace Turkey’s parliamentary system with a presidential one could as well put a referendum/general election/by-election uncertainty to the horizon; further delaying the much needed structural reforms.  Moreover, with the civil war ongoing in Syria, terrorist attacks from ISIS and PKK ranks add to the risks.  On the bright side, the expectations that Fed will proceed with the rate hikes in baby steps with substantial intervals will decelerate the runaway of portfolio flows from emerging markets; and Turkey.  The heavyweights in the list of external uncertainties for 2016 are the UK’s referendum on EU membership, relations with Russia and developments on the Syria front.  

Besides the importance of macroeconomic developments I mentioned above, we know and strongly believe that the conversion of idle resources into efficient investments, improve and increase the welfare of a country.

In this sense, with the slogan of "Real Investment, Real Value ", our company showed a unique success in gaining the unused resources in the economy while evaluating investment opportunities in order its investment philosophy and yield criteria, either directly or by means of subsidiaries.

Without compromising on its approach to innovative, sustainable and responsible investments, last year, our company continued its efforts to realize projects for gaining sustainable income for its stakeholders. This year has been a year which we can measure the success with tangible results and create a real business achievements in the sectors which we invested in with patience and determination.

It is a clear indication that we are on the right track and we are working with the accurate teammates since we observed that our business plans -which we carefully executed before investments- are realized without any significant shift. Our efforts and works -in line with our corporate values- will also continue in 2016 for realization of new investment opportunities into success and diversification of our current investment portfolio and move them to the next level. We are truly committed to our expectations and our growth objectives after 2015, although it was a year occupied with economic, political and sociological problems both in our country and abroad.

Our team spirit, values and know-how carried us to this point. First of all, I would like to take this opportunity to express my thanks to all of my colleagues due to their efforts in obtaining such successful results, then to our investors and you, our distinguished stakeholders.

I wish 2016 would bring health, pleasure, success, peace and prosperity for everyone.

Yours faithfully,

Tan Egeli
Chairman of the Board

This article is taken from Egeli & Co. Agriculture Investment Trust 2015 annual report.