Mutual Funds

Mutual funds established by Burgan Bank and Burgan Securities provide valuable investment alternatives.

EFG Istanbul Equities A Type Equity Fund

Fund Type: A Type Equity
Risk Level: High
Investment Horizon: Long Term
Fund Manager: Burgan Securities
Depository Institution: Takasbank A.Ş.
Public Offering Date: January 23, 2009
Currency Denomination: TRY
Valuation: Daily
Entrance Fee: 0%
Management Fee: Daily 0.010%
Performance Fee: 0%
Purchase Orders: T+1 (until 13:00)
Sale Orders: T+2 (until 13:00)
Minimum Investment Limit: 10 shares
Performance Comparison Benchmark: %80 ISE100 + %20 KYD Repo Net

What is the purpose of the Fund?

  • The fund aims to generate a higher return than the ISE100 index and no less than 60% of the fund's portfolio consists of equities at all times. The fund manager may allocate derivatives products in order to maximize the return.
  • The fund is labeled in the high-risk category due to higher volatility in the equities market.

Who should invest in a A Type Equity Fund?

  • Investors aiming to invest in Turkish equity markets with a diversified portfolio while being well aware of short term risks and price fluctuations.

What are the risks involved for investors?

The Fund has a high risk level.

Potential risk factors: political, macroeconomic, capital markets volatility, market liquidity, legal and management risks.

The Fund manager and founder do not guarantee any minimum returns or the principal.

How are Fund units purchased and sold?

Purchase-sale orders may be submitted via Burgan Bank branches, www.burgan.com.tr and Burgan Securities in all working days.

What are the advantages of the A Type Equity Fund?

Professional management, effective management of even small savings, ease in transaction, liquidity, time efficiency and legal supervision.

How is the Fund audited?

In line with the relevant communiqués of the Capital Markets Board (SPK), our mutual fund is audited on a semi-annual basis by an independent audit company.

EFG Istanbul Equities B Type Fixed Income Fund

Fund Type: B Type Fixed Income
Risk Level: Moderate
Investment Horizon: Medium Term
Fund Manager: Burgan Securities
Depository Institution: Takasbank A.Ş.
Public Offering Date: January 23, 2009 (Type change July 05, 2010)
Currency Denomination: TRY
Valuation: Daily
Entrance Fee: 0%
Management Fee: Daily 0.008%
Performance Fee: 0%
Purchase Orders: T+1 (until 13:30)
Sale Orders: T+1 (until 13:30)
Minimum Investment Limit: 10 shares
Performance Comparison Benchmark: %44 KYD547 + %35 KYD365 + %19 KYD Repo Net + %1 KYD Corp fixed + %1 ISE100

What is the purpose of the Fund?

  • Long-maturity fixed income securities have the highest weight in the Fund portfolio. The fund may invest in equities with lower risks and high dividend yields, however the total share of equities in the fund portfolio may not exceed 20%.
  • Fund manager sets the allocation of Equities, G-bonds, T-bills and repos in the portfolio according to changing market conditions, and actively manages the Fund portfolio.
  • Fund manager designates the maturities of the fixed yield securities included in the Fund parallel to market conditions and expectations, with an aim to benefit from price changes.

Who should invest in a B Type Fixed Income Fund?

  • Investors with a medium term investment horizon, who prefer investing in fixed income securities such as G-bonds and T-bills and aim to generate returns through price fluctuations in these instruments while limitedly benefiting from the opportunities in equities.

What are the risks involved for investors?

  • The Fund has a moderate risk level.
  • Potential risk factors: political, macroeconomic, capital markets volatility, market liquidity, legal and management risks.
  • The Fund manager and founder do not guarantee any minimum returns or the principal.

How are Fund units purchased and sold?

Purchase-sale orders may be submitted via Burgan Bank branches, www.burgan.com.tr and Burgan Securities in all working days.

What are the advantages of the B Type Fixed Income Fund?

Professional management, effective management of even small savings, ease in transaction, liquidity, time efficiency and legal supervision.

How is the Fund audited?

In line with the relevant communiqués of the Capital Markets Board (SPK), our mutual fund is audited on a semiannual basis by an independent audit company.

Eurobank Tekfen A.Ş. B Type Flexible Fund

Fund Type: B Type Flexible
Risk Level: Moderate
Investment Horizon: Medium Term
Fund Manager: Burgan Securities
Depository Institution: Takasbank A.Ş.
Public Offering Date: April 24, 1996
Currency Denomination: TRY
Valuation: Daily
Entrance Fee: 0%
Management Fee: Daily 0.008%
Performance Fee: 0%
Purchase Orders: T+1 (until 13:30)
Sale Orders: T+1 (until 13:30)
Minimum Investment Limit: 10 shares
Performance Comparison Benchmark: None

What is the purpose of the Fund?

The fund is managed actively in line with changing market conditions with no dedicated benchmarks. The fund aims to generate returns through a variety of capital market instruments with an absolute return target. The share of fixed income instruments in the portfolio is raised when risk appetite drops and expectations deteriorate while stock investments are increased when fundamentals improve.

Who should invest in a B Type Flexible Fund?

Investors who aim to invest primarily in fixed income instruments, but are willing to benefit from the opportunities in other financial products such as stocks, futures, f/x, and options. The fund has a medium/high risk profile.

What are the risks involved for investors?

  • The Fund has a moderate risk level.
  • Potential risk factors: political, macroeconomic, capital markets volatility, market liquidity, legal and management risks.

The Fund manager and founder do not guarantee any minimum returns or the principal.

How are Fund units purchased and sold?

Purchase-sale orders may be submitted via Burgan Bank branches www.burgan.com.tr and Burgan Securities in all working days.

What are the advantages of the B Type Flexible Fund?

Professional management, effective management of even small savings, ease in transaction, liquidity, time efficiency and legal supervision.

How is the Fund audited?

In line with the relevant communiqués of the Capital Markets Board (SPK), our mutual fund is audited on a semi-annual basis by an independent audit company.

Eurobank Tekfen A.Ş. B Type Money Market Fund

Fund Type: B Type Money Market
Risk Level: Low
Investment Horizon: Short Term
Fund Manager: Burgan Securities
Depository Institution: Takasbank A.Ş.
Public Offering Date: May 15, 1995
Currency Denomination: TRY
Valuation: Daily
Entrance Fee: 0%
Management Fee: Daily 0.003%
Performance Fee: 0%
Purchase Orders: T date (until 16:00)
Sale Orders: T date (until 16:00)
Minimum Investment Limit: 10 shares
Performance Comparison Benchmark:KYD 91 DAY BOND INDEX (30%)+O/N REPO NET (70%)

What is the purpose of the Fund?

  • The Fund includes highly Money Market capital market instruments with at most 180 days left to maturity, and repo.
  • The weighted average maturity of the Fund portfolio is at most 45 days.
  • The Fund is aimed to be an alternative investment instrument to products such as short term deposits and repos.

Who should invest in a B Type Money Market Fund?

  • Investors that seek to invest in a flexible product suitable for short term investments, carrying a low level of risk, delivering consistent returns, in addition to providing time efficiency and ease in transaction.

What are the risks involved for investors?

  • The Fund has a low risk level.
  • It has no purchase-sale maturity risk, as it can be purchased and sold on the same day.
  • Potential risk factors: political, macroeconomic, market liquidity related, legal and management risks.

The Fund manager and founder do not guarantee any minimum returns or the principal.

How are Fund units purchased and sold?

Purchase-sale orders may be submitted via Burgan Bank branches, www.burgan.com.tr and Burgan Securities in all working days.

What are the advantages of the B Type Money Market Fund?

Professional management, effective management of even small savings, ease in transaction, Money Marketity, time efficiency and legal supervision.

How is the Fund audited?

In line with the relevant communiqués of the Capital Markets Board (SPK), our mutual fund is audited on a semi-annual basis by an independent audit company.

Eurobank Tekfen A.Ş.B Type Gold Fund

Fund Type: B Type Gold
Risk Level: Moderate-High
Investment Horizon: Medium/Long Term
Fund Manager: Burgan Securities
Depository Institution: Takasbank A.Ş. and Istanbul Gold Exchange
Public Offering Date: November 8, 2010
Currency Denomination: TRY
Valuation: Daily
Entrance Fee: 0%
Management Fee: Daily 0.0045%
Performance Fee: 0%
Purchase Orders: T+1 (until 12:00)
Sale Orders: T+1 (until 12:00)
Minimum Investment Limit: 10 shares
Performance Comparison Benchmark: %95 KYD Gold + %5 KYD Repo Net

What is the purpose of the Fund?

  • The fund aims to replicate the performance of gold denominated in Turkish Liras as closely as possible. Therefore, at minimum 70% of the fund's portfolio should be invested in gold at all times.

Who should invest in a B Type Gold Fund?

  • Investors who want to participate in the performance of gold at a medium to long time horizon.
  • The fund's performance reflects the volatility in global gold prices and the US$/TRL parity, therefore the risk classification is medium to high.

What are the risks involved for investors?

  • The Fund has a moderate/high risk level.
  • Potential risk factors: political, macroeconomic, capital markets volatility, market liquidity, legal and management risks.
  • The Fund manager and founder do not guarantee any minimum returns or the principal.

How are Fund units purchased and sold?

Purchase-sale orders may be submitted via Burgan Bank branches, www.burgan.com.tr and Burgan Securities in all working days.

What are the advantages of the B Type Fixed Income Fund?

Professional management, effective management of even small savings, ease in transaction, liquidity, time efficiency and legal supervision.

How is the Fund audited?

In line with the relevant communiqués of the Capital Markets Board (SPK), our mutual fund is audited on a semi-annual basis by an independent audit company.

Taxation of Mutual Funds

From a Fund perspective: Mutual funds are exempt from corporate tax. Additionally, a 0% withholding tax rate is applied to returns generated through the management of mutual fund portfolios.

From a Fund Investor perspective: The return of mutual fund units to the fund by full-fledged tax paying real persons or limited tax payer real persons is subject to 10% withholding tax. This is the ultimate tax and no additional declaration related to this gain is required. Full-fledged corporate tax payers and limited tax-payer institutions with no office premises or permanent representative offices in Turkey are subject to 0% withholding tax over the returns they generate from mutual funds. Earnings generated via mutual fund units are included in corporate earnings and are thus subject to 20% corporate tax. The withholding tax charge (if any) is deducted from the calculated amount of corporate tax.

However, gains generated through returning the units of a mutual fund held for at least one year are tax exempt, provided that 51% of the mutual fund portfolio consists of stocks traded on the Istanbul Stock Exchange (ISE). Furthermore, such gains are not included in the annual declaration.

Separately, gains generated through stock intensive mutual funds are subject to 0% withholding tax. Stock intensive mutual funds are obliged to allocate at least 75% of their portfolio to stocks traded on the Istanbul Stock Exchange (ISE) (excluding investment trusts).