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ments as required by the Board. The Fund by-laws is an agreement
between the contributors and the Company, the portfolio keeper and
the portfolio manager which contains general provisions and regulates
the keeping of the portfolio in accordance with the principals of fidu-
ciary ownership and the management of the portfolio in accordance
with the provisions of the proxy agreement.
The portfolio is managed by portfolio managers within the frame-
work of the Fund by-laws, the pension agreement and related legisla-
tion.
For the establishment of the Fund, the fund by-laws shall be regis-
tered with the trade registry where the Company is registered within
six business days following obtaining of the approval document
received pursuant to the approval of the Board and shall be published
in the Turkish Trade Registry Gazette (“TTRG”).
In order for the Fund to commence its operation, an application
shall be made to the Board within six months after the Company
receives incorporation permission, along with a request to register the
contribution documents and other required documents. If the applica-
tion is not made on time, the Fund by-laws are removed from the trade
registry.
If the approval of the Board is obtained, at least three Funds con-
sisting of different investment instruments as determined by the Board
and which have different portfolio structures will be established. At
least 5% of the capital will be registered with the Board for each Fund
and the established Fund will amount to the shares that are 5% of the
capital. In the event that the total amount of shares that are provided by
the contributors exceed the amount of the registered shares, an appli-
cation shall be made with the Board for the registration of the excess
shares with the Board.
The Board shall collect a registration fee, which shall not exceed
0,005% of fund’s net asset value, upon receiving the approval of the
Undersecretariat by the last business day of the aforementioned three-
month period.
The accounts and the transactions of the Fund are subject to inde-
pendent audit at least once per year.
376
NEWSLETTER 2012