T. Garanti Bank Type B 100% Principal Protected Sixth Sub-Fund for investors who anticipate that the ISE-30 Index will increase, while providing the best possible protection for your principal, also offers the opportunity to take advantage of the potential increase in the ISE-30 index, in proportion with your participation. Thus, at maturity, you obtain returns from the increase in the ISE-30 Index, and protect your principal even if the ISE-30 Index decreases.
Fund Name T. Garanti Bank Type B 100% Principal Protected Sixth Sub-Fund for investors who anticipate that the ISE-30 index will increase Founder T. Garanti Bank Portfolio Manager Garanti Asset Management Investment Instruments T-Bills/Government Bonds & European Type Call Options Currency Type TL IPO Period 08/02/2010 - 12/02/2010 Investment Period 15/02/2010 - 08/12/2010 Basis Asset ISE-30 Index 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 10% Stoppage
- 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.
- After 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). Sell 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, sell 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
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 20, the participation ratio would be 10/20 = 50%. By multiplying potential earnings by 50%, the amount to be earned in addition to the principal is found.
Performance = [(ISE-30 Index Ending Value / ISE-30 Index Starting Value) – 1]
Example 1 ISE-30 Index Explanation Starting Amount 67,500
At maturity, the ISE-30 Index increases by %41. In this case, the 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%x50%) = 120%
Return After Tax = 20%x (90%) = 18%
Amount at Maturity 95,000 Return 41 % Participation Ratio* 50 % Tax 10 % Example 2 USD/TL Explanation Starting Amount 67,500
At maturity, the USD/TL parity is equal to the starting value. As the rate of return is 0%, the right side of the equitation 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 50%) = 100%
Amount at Maturity 67,500 Return 0 % Participation Ratio* 10 % Tax 10 % Example 3 USD/TL Explanation Starting Amount 67,500
At maturity, the USD/TL parity decreases. As the rate of return is a negative value, the right side of the equitation 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 50%) = 100%
Amount at Maturity 40,000 Return - 41 % Participation Ratio* 63 % Tax 10 %
* 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.
** All values on the calculation tables are indicative only and provided for informative purposes.
Gross Value at Maturity = Principal (100%) + [Participation Ratio x if Performance > 0, then Performance; if Performance < 0, then 0)
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
What are the advantages of trading on TurkDex (The Turkish Derivatives Exchange)?
Advantages of trading are leveraging, short sales, tax advantages, portfolio diversification, hedging and accretion of margins.Find out more
When are the demand collection periods of the first and the second sub funds for investment and the IPO?
For the first sub-fund, the investment period is between July 27 2009 – June 23, 2010. The demand collection period is July 15 – 24.Find out more