What is A and B Type Fund?
Funds investing minimum 25% of their portfolio into shares of Turkish private or state owned are treated as A-Type Funds. Funds other than above are called B-Type Funds.
Taxation
Taxation of mutual funds is as follows;
For resident individuals: capital gains derived from mutual funds are subject to 10% witholding tax. Capital gains derived from holding fund certificates more than a year (subject to minimum 51% of the mutual fund invested in stocks ) are not subject to witholding tax.
For resident corporations: same as above. Resident corporations are subject to corporate tax but withholding tax paid can be deductible from corporate tax statement.
For non-resident individuals: Capital gains derived from A and B Type mutual funds are not subject to tax statement.
For non-resident corporations: Capital gains derived from A and B Type mutual funds are not subject to tax statement.
Mutual Funds Managed by Tekstil Securities
B-Type Mutual Funds
Money Market Fund
Definition: Portfolio of fund consists of bonds having maximum 180 days to maturity
Risk Level: Low
Suggested investment period: 0-3 months
Management Fee: 12,5 %000
Suggested Client Profile: Risk averse investors, looking for alternatives to overnight reverse repo and overnight deposit.
Management Strategy: 10-40 % of the portfolio is invested in T-bills and bonds, 60-90% of the portfolio invested in reverse repo.
Benchmark: 25% TIIMA 91 days bond index, 75% ISE o/n net repo index
Goal: as fund certificates can easily be converted into cash upon demand, investors have a cash management advantage. Fund aims to preserve the capital from inflation with low risk.
Trading Hours: When ISE Bond and Bill Market is open, unlimited trading is allowed between 09.00 and 13.30. Trading is allowed all day long via internet banking except 16.00-18.00 lt.
Establishment Date: 28.09.1992
Taxation: capital gains are subject to 10% witholding tax
Performance:
| YEAR |
YIELD (%) |
BENCHMARK YIELD(%) |
INFLATION (%) (CPI) |
| 2004 |
15.19 |
20.84 |
10.58 |
| 2005 |
10.79 |
13.83 |
7.72 |
| 2006 |
10,36 |
14,00 |
9,65 |
| 2007/1 |
3,25 |
3,95 |
2,36 |
Variable Fund
Definition: Flexibility of portfolio and maturity structure
Risk Level: Low medium
Suggested investment period: over 3 months
Management Fee: 10 %000
Suggested Client Profile: Investors looking for alternatives to T-Bils and bonds.
Management Strategy: 40-70 % of the portfolio invested in T-bills and bonds, 0-30 % invested in stocks, 30-60 % of the portfolio invested in reverse repo.
Benchmark: 50% TIIMA 365 days bond index, 5% ISE 100 index, 45% ISE o/n net repo index
Goal: This fund aims to yield over inflation by carrying T-bils and bonds with different maturity dates. Sometimes by carrying stocks higher yield than T-Bills and bonds can be obtained.
Trading Hours: Buying and selling orders given between 09:00-13:00 are settled next business day, orders given after 13:00 settled on the second business day.
Establishment Date: 13.10.1993
Taxation: capital gains are subject to 10% witholding tax
Performance:
| YEAR |
YIELD (%) |
BENCHMARK YIELD(%) |
INFLATION (%) (CPI) |
| 2004 |
21.02 |
23.53 |
10.58 |
| 2005 |
17.44 |
19.20 |
7.72 |
| 2006 |
10,36 |
14,00 |
9,65 |
| 2007/1 |
3,25 |
3,95 |
2,36 |
A-Type Mutual Funds
All Equity Fund
Definition: Minimum 51% of the mutual fund at any given time invested to stocks of Turkish companies
Risk Level: High
Suggested investment period: over 6 months
Management Fee: 15 %000
Suggested Client Profile: Recomended to investors accepting high risk.
Management Strategy: 55-85 % invested in stocks,15-45 of the portfolio invested in reverse repo.
Benchmark: 80% ISE 100 index,20% ISE O/N net Repo index
Goal: This fund aims high yield
Trading Hours: Buying orders given between 09:00-13:00 executed next business day, selling orders executed 2 days following order. Buying orders given after 13:00 executed 2 days after, selling orders executed 3 days following order.
Establishment Date: 03.05.2000
Taxation: capital gains derived from mutual funds are subject to 10% witholding tax. Capital gains derived from holding of participation certificate of A-Type equity funds more than a year (minimum 51% of the mutual funds consist of the stocks) are not subject to witholding tax
Performance:
| YEAR |
YIELD (%) |
BENCHMARK YIELD(%) |
INFLATION (%) (CPI) |
| 2004 |
27.10 |
28.26 |
10.58 |
| 2005 |
82.18 |
40.59 |
7.72 |
| 2006 |
11,13 |
5,73 |
9,65 |
| 2007/1 |
12,19 |
10,17 |
2,36 |
Variable Fund
Definition: Minimum 25% of the mutual fund at any given time invested to stocks of Turkish companies
Risk Level: Medium high
Suggested investment period: over 6 months
Management Fee: 15 %000
Suggested Client Profile: Recomended to investors accepting equity risk.
Management Strategy: 30-60 % invested in stocks, 40-70% of the portfolio invested in reverse repo.
Benchmark: 45% ISE 100 index, 55% ISE O/N net Repo index
Goal: This fund aims acquiring yield by investing in fixed income securities and stocks.
Trading Hours: Buying orders given between 09:00-13:00 executed next business day, selling orders executed 2 days following order. Buying orders given after 13:00 executed 2 days after, selling orders executed 3 days following order.
Establishment Date: 03.05.2000
Taxation: capital gains derived from mutual funds are subject to 10% witholding tax
Performance:
| YEAR |
YIELD (%) |
BENCHMARK YIELD(%) |
INFLATION (%) (CPI) |
| 2004 |
27.97 |
25.27 |
10.58 |
| 2005 |
58.12 |
30.34 |
7.72 |
| 2006 |
12,04 |
9,14 |
9,65 |
| 2007/1 |
8,38 |
7,35 |
2,36 |