Amendments to the Guide on Investment Funds Made With the Principle Decision of the Capital Markets Board dated 21.11.2024 and Numbered 60/1696

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1.2.b. (Amended by the Board Decision dated 23.05.2016 and numbered 17/573) (Amended by the Board Decision dated 14.11.2019 and numbered 65/1464) (Amended by the Board Decision dated 22.04.2022 and numbered 19/629) (Amended by the Board Decision dated 21.11.2024 and numbered 60/1696)

For funds to be issued under variable umbrella funds, fund basket umbrella funds, or participation umbrella funds, investment strategies must be determined based on the risk value calculation method specified in the Guide. A maximum of one fund can be issued for each risk value group, provided that the fund name includes the type of fund and the terms listed below. Including funds with risk values, the maximum number of issuable funds cannot exceed four.

Fund Name	Risk Value
Conservative/Cautious	1-2
Balanced	3-4
Active/Dynamic/Growth	4-5
Aggressive	5-7

1.6. (Added by the Board Decision dated 24.09.2020 and numbered 60/1183) (Amended by the Board Decision dated 21.11.2024 and numbered 60/1696)

It is mandatory for the shares to be included in the portfolios of funds with the term “participation” in their titles to be selected from the shares listed in indices that have been approved for compliance with interest-free/participation finance principles (e.g., Participation 30 Index, Participation 50 Index, and Ziraat Portfolio Participation Index calculated by Borsa İstanbul A.Ş.), and/or for their compliance with interest-free/participation finance principles to be confirmed by an advisor or advisory committee.

For lease certificates, participation accounts, gold, and other precious metals, as well as promissory agreements and other monetary and capital market instruments to be included in the portfolios of funds with the term “participation” in their titles, the same compliance requirement is essential.

• The annex to the fund prospectus or the fund’s page on the Public Disclosure Platform (KAP) must include information on the identity of the advisor or members of the advisory committee, the knowledge and experience of the advisor/advisory committee members in the field of interest-free/participation finance, and the working principles of the advisor/advisory committee (e.g., information on the methods used to assess compliance with interest-free/participation finance principles).
• The fund prospectus must include information regarding the purification of impermissible income, and it is permissible for such amounts to be covered by the fund’s assets or the fund management fee, provided that prior approval is obtained from the advisor/advisory committee regarding the process. If the amount is covered by the fund’s assets, the founder must include measures in the prospectus to ensure that the unit share value of the fund is not significantly affected by this process. The founder is required to disclose the calculated amount of the purification and the institution to which it was transferred on the KAP within 5 business days following the completion of the purification process. This amount is not taken into account in the calculation of the total expense ratio of the fund.

It is also permissible to replace the term “leverage risk” with the term “participation-based transaction risk” in the prospectuses of funds with the term “participation” in their titles, provided that the necessary explanations are included in the prospectus.

2.b) Principles Regarding Fund Names (Amended by the Board Decision dated 21.03.2023 and numbered 17/366)(Amended by the Board Decision dated 21.11.2024 and numbered 60/1696)

In addition to the minimum expressions specified in subsection (a), no more than one additional expression may be included in the fund’s name. Exceptions to this condition may be granted by the Board to ensure that investors are more accurately informed. However, under no circumstances may subjective expressions that do not reflect the investment strategy (e.g., “future,” “performance,” “return,” “global,” “focus”) be included in the names of funds whose participation shares are traded on TEFAS, nor may any reference to a specific distributor institution be included.

2.i) (Amended by the Board Decision dated 22.04.2022 and numbered 19/629) (Amended by the Board Decision dated 12.10.2023 and numbered 60/1316) (Amended by the Board Decision dated 21.11.2024 and numbered 60/1696)

Pursuant to subsection (b), it is permissible to add expressions reflecting the techniques/methods/risk values used for asset selection and risk distribution within the framework of the portfolio management strategy of variable funds, fund basket funds, and participation funds that do not allocate at least 80% of the fund’s total value to a specific asset.

3.3. (Additional Paragraph: Added by the Board Decision dated 21.11.2024 and numbered 60/1696)

Funds without the term “foreign exchange” in their titles may not invest 80% or more of the fund’s total value in foreign currency-denominated monetary and capital market instruments, except as provided for by relevant legislation.

4.9. Principles for Funds with the Terms “Money Market” and “Short-Term” in Their Titles (Added by the Board Decision dated 06.01.2022 and numbered 1/21) (Amended by the Board Decision dated 02.02.2023 and numbered 5/151) (Amended by the Board Decision dated 21.11.2024 and numbered 60/1696)

For money market funds, a maximum of 50% of the fund’s total value may be allocated to deposits/participation accounts. However, the amount allocated to a single bank may not exceed 6% of the fund’s total value.

For money market participation funds, a maximum of 50% of the fund’s total value may be allocated to participation accounts. However, the amount allocated to a single bank may not exceed 20% of the fund’s total value.

For these funds, deposits/participation accounts in the fund portfolios are not taken into account when conducting the checks specified in paragraphs (a), (b), and (c) of the first clause of Article 17 of the Fund Communiqué.

Funds with the terms “Money Market” and “Short-Term” in their titles may enter into reverse repo agreements on the Borsa Istanbul A.Ş. Equity Repo Market, provided that the total value does not exceed 25% of the fund’s total value.

A minimum of 10% of the portfolio of money market funds (excluding funds with the term “participation” in their titles) must be allocated to government domestic borrowing instruments. Money market funds are required to comply with this limitation by February 28, 2025. Regarding this limitation, amendments to fund information documents and, where deemed necessary, changes to the benchmark/threshold value may be implemented without requiring Board approval, provided that the notification and registration processes specified in the Fund Communiqué are fulfilled.

6.5. Promotion (Amended by the Board Decision dated 01.03.2018 and numbered 9/316) (Amended by the Board Decision dated 21.11.2024 and numbered 60/1696)

Institutions distributing fund participation shares must submit a written application to the Association for promotional campaigns aimed at benefiting investors based on investments in fund participation shares, and these applications will be evaluated by the Association. Summary information regarding promotional campaigns for investment funds will be submitted to the Board by the tenth business day of the following month, based on the end of each month.

Promotional costs may not be charged to the fund.

8.4. Announcement of Reference Prices by Investment Funds Calculating Unit Share Values at Specified Periods (Amended by the Board Decision dated 21.11.2024 and numbered 60/1696)

Funds calculating unit share values at specified periods as determined in their prospectuses or on their KAP pages must calculate and announce a daily reference/indicative unit share value in accordance with the valuation principles in the relevant legislation. Notifications regarding the calculated unit share value must be submitted to the portfolio custody service providers and Takasbank. This regulation will come into effect on January 2, 2025.

13. (Added by the Board Decision dated 16.02.2024 and numbered 11/255) (Repealed by the Board Decision dated 21.11.2024 and numbered 60/1696)