Amendments to the “Fund Types” and “Principles Regarding Standard Funds” Sections of the Guidelines on Pension Mutual Funds

The Capital Markets Board Decision dated February 29, 2024, and numbered 13/337 (Board Decision) was published in the Capital Markets Board Bulletin dated 29.02.2024 and numbered 2024/13. Under the Board Decision, amendments were made to the sections titled “Fund Types” and “Principles Regarding Standard Funds” of the Guidelines on Pension Mutual Funds (Guidelines). The amendments to the Guidelines are summarized below:

• “Centralized Transfer of Receivables Pension Fund” paragraph has been added to the section titled “Fund Types” of the Guidelines. Centralized Transfer of Receivables Pension Fund is defined as a fund in which the accumulations in question are invested under the regulations of the Insurance and Private Pension Regulatory and Supervisory Authority in case the receivables arising from private pension contracts are transferred by the participants within the framework of Articles 26/C and 23/A of the Regulation on Private Pension System.
• In standard funds, the ratio of the fund portfolio to be invested in debt instruments issued by banks or other issuers with investment grade ratings provided that they are denominated in Turkish Lira and traded on the stock exchange, lease certificates whose fund users are banks or whose fund users have investment-grade ratings provided that they are denominated in Turkish Lira and traded on the stock exchange, mortgage and asset-backed securities, mortgage, and asset-backed securities, and promissory contracts was reduced from 30% to 29%.
• Standard funds were regulated to invest 1% of the fund portfolio in venture capital investment fund units. Thus, it became possible to invest in venture capital investment funds through standard funds.
• Standard funds are obliged to comply with the minimum venture capital investment requirement until 30.06.2024. In this context, the amendments to be made in the fund disclosure documents can be put into effect by the founders by updating the KAP page of the fund and fulfilling the registration announcements and procedures stipulated in the Regulation, without seeking the approval of the Capital Markets Board.