T. Garanti Bank Type B 100% Income Protected Sub-Fund for investors who anticipate that the ISE-30 Index will decrease, while fully protecting your principal in TL at maturity, also provides the opportunity to obtain returns from the drop in the ISE-30 Index, in proportion with your participation. Thus, while obtaining returns from the drop in the ISE-30 Index at maturity, you protect your principal even if the index rises.
Fund Name T. Garanti Bank Type B 100% Principal Protected Second Sub-Fund for investors who anticipate that the ISE-30 Index will decrease Founder T. Garanti Bank Portfolio Manager Garanti Asset Management Investment Instruments T-Bills/Government Bonds & European Type Put Options Currency Type TL IPO Period 15/07/2009 - 24/07/2009 Investment Period 27/07/2009 - 23/06/2010 Basis Asset ISE-30 Principal Protection 100%, only at the end of the investment period (at maturity) Management Fee 2% Annual Minimum Participation TL 3.000 (300.000 shares) Application Channels Garanti Bank Branches & Investment Centers Buying Through IPOs (only during the demand collection period) Selling Twice monthly (1st and 15th days) Early Exit Fee None Tax
- In the Principal Protected Fund, purchases are made through IPOs.
- The IPO period is 5 working days.
- The minimum demand amount is TL 3.000.
- At the end of the IPO, fund purchase is not possible till maturity.
- Bids collected though the IPO period are invested in T. Garanti Bank Type B Money Market Fund.
- The orders placed until 12:00 on the last day of the IPO period can be canceled, however as demand collection is on a time-priority basis, in the case that the order is canceled and a new order is placed, it may fall back on the list.
- Early exit from the funds is possible and no early exit fee is charged.
- The share price of the fund is calculated twice a month, on the 1st and the 15th day of each month, or the next working day if the aforesaid days are holidays.
- Orders placed until 11:30 on the day that the price is announced (T) are executed on the next trading day (T+1) at the price announced, orders placed after 11:30 are executed on the next price announcement day.
- At the end of the investment period, the funds in the investors' accounts will be automatically cashed in.
- You can find out the the fund prices through Internet Banking and all Garanti branches.
- Example Calculation
By taking the negative return between the starting date end the ending date of the ISE-30 Index as the performance value, the gross value at the maturity date is calculated through the formulas below.
The participation ratio is the options amount per unit share and it is calculated by dividing the remaining amount to be used in buying options by the options price. This ratio indicates the investor's participation ratio in the potential earnings of the fund.
For example: if a TL 100 fund invests TL 90 in government bonds and purchases options with the remaining TL 10, given that options price is TL 16, the participation ratio would be 10/63 = 63%. By multiplying potential earnings by 63%, the amount to be earned in addition to the principal is found. * The participation ratio is fixed for the maturity date and may change over the course of the fund based on the market variables. The actual participation ratio will be announced after the fund portfolio is established.
Performance = [(ISE-30 Index Starting Value / ISE-30 Index Ending Value) - 1]
Gross Value At Maturity = Principal (100%) + (Participation Ratio x If Performance > 0 then Performance, If Performance < 0, then 0)
Example 1 ISE 30 Index Explanation Starting Amount 59,000
At maturity, the ISE 30 Index depreciates by %41. In this case, the negative return of the ISE 30 Index will be multiplied by the participation ratio, and the amount will be added on top of the principal and given to the investor. The investor's return will be subject to a 10% stoppage tax.
Gross Value at Maturity = 100% + (41% x 63%) = 126%
Return After Tax = 26% x (90%) = 23%
Amount at Maturity 35,000 Return -%41 Participation Ratio* %63 Tax %10 Example 2 ISE 30 Index Explanation Starting Amount 59,000
At maturity, the ISE 30 Index is equal to the starting value. As the rate of return is 0%, the right side of the equation will be "0" and the investor will only get the principal. As there is no return, no stoppage tax will be applied.
Gross Value at Maturity = 100% + (0% x 63%) = 100%
Amount at Maturity 59,000 Return %0 Participation Ratio* %63 Tax %10 Example 3 ISE 30 Index Explanation Starting Amount 59,000
At maturity, the ISE 30 Index appreciates by %27. As the rate of return is a positive value, the right side of the equation will be 0 and the investor will only get the principal. As there is no return, no stoppage tax will be applied.
Gross Value at Maturity = 100% + (0% x 63%) = 100%
Amount at Maturity 75,000 Return %27 Participation Ratio* %63 Tax %10
* All values on the calculation tables are indicative only and provided for informative purposes.
We found the following questions in our Help & Advice which might be useful for you...
How can I place a buy order for the fund? Can I place a buy order in the interim period?
You may place your buy orders between the hours of 09:00 and 18:00 on the announced demand collection days, and until 12:00 on the last day.Find out more