Newsletter-21

240 NEWSLETTER 2016 Value Reports to be prepared within the Context of Portfolio Reports The value reports to be prepared pursuant to the Communique are in standard form and prepared in compliance with the format attached to the Communique. The value reports cover asset valuation tables and the total value/net asset value table, which forms a basis for the calculation of the share prices. A portfolio valuation table is a table prepared for the calculation of the portfolio value. The principles regarding the calculation of the portfolio value are explained in detail under Article 9 of the Com- munique. Some of the significant principals taken into consideration while valuing the assets in the portfolio are as follows 2 : i) the assets taken to the portfolio are registered with the purchase price. If the assets are purchased with foreign currency, the purchase price shall be calculated by multiplying the value of the foreign currency on the purchase day with the selling rate of exchange of the Central Bank of the Republic of Turkey, ii) the assets in the portfolio that are traded at the exchange shall be valued according to the weighted average price and ratios formed at the valuation date starting from the purchase date. As to the shares that are traded at the exchange, but that are not subject to purchase or sale at the valuation date, they shall be valued at the stock exchange price on the final transaction date. Debt instruments, reverse repos and repos are valued at the internal rate of return on the last transaction day, iii) fund participation ratio shall be valued based on the last prices disclosed as of the valuation day. Total value/net asset value tables are prepared in order to deter- mine the total value/net asset value and the participation share. Pursu- ant to Article 8 of the Communique, total value/net asset values shall be calculated by the addition of other assets and receivables, if any, to the portfolio value and subtraction of the debts; and the participation ratio shall be calculated by dividing the total value/net asset value to the participation ratio. This table should be prepared in accordance with the principles determined by the Capital Markets Board (“CMB”). 2 The newsletter article does not include all of the valuation principles, but only constitutes the main principles.