254 / 522
Definition and Portfolio of the Companies
Pursuant to Art. 41 of the Communiqué, the ICVC “
is a capital
market institution, of which the capital is always equal to its net asset
value, and which is established in the form of a joint stock company to
operate its portfolio comprised of the following assets and instruments,
and may conduct activities that are permitted by this Communiqué.
”
Art. 50 of the CML defined a net asset value as “
the value reached by
subtracting the total of the debts from the total of the assets.
” The
assets and the instruments which may be included in the portfolio of
the ICVC are similar to the assets and instruments that are permitted to
be included in the portfolio of investment companies with fixed capi-
tal and security investment funds; such assets and instruments are pro-
vided by Art. 41/1 of the Communiqué.
Pursuant to Art. 42 of the Communiqué, the portfolio of the ICVC
shall be kept by the portfolio custodians, and shall be managed by the
portfolio managers having adequate information on the assets to be
included in the portfolio, and those with at least 3 years of experience
in the field of capital markets; such manager shall manage the portfo-
lio for the benefit of the investors and in a manner that protects the
interests of the investors. The debts and the liabilities of portfolios
before the third parties shall not be set off by the receivables of the
portfolio from the same third parties. Additionally, the portfolio of the
company shall not be mortgaged nor have been provided as security.
However, it may be mortgaged or provided as security for a loan, trans-
actions regarding derivative instruments, or other similar transactions
concluded by a party on behalf of the portfolio, provided that the trans-
action is concluded on account of the portfolio, and a provision is
included in the articles of association and prospectus.
Establishment
Art. 45 of the Communiqué sets forth conditions for establishment
of the ICVC.
Accordingly, the following conditions shall be fulfilled contrary to
the investment companies with fixed capital: The initial capital of 2
million TRY, undertaking to the Capital Markets Board (“Board”) by
the founders to increase the net asset value at least to TRY 4 million by
238
NEWSLETTER 2015