Garanti Asset Management Third Hedge (FX) Fund - SMART FX Hedge

Garanti BBVA offers USD-based mutual funds for qualified investors* who want to evaluate their savings in foreign currency assets.

SMART FX Hedge Fund invests at least 80% of its portfolio in public and private sector Eurobonds. In addition, the 20% portion of fund portfolio is constantly and dynamically updated according to changing market conditions, so that you will benefit from the most appropriate mix of foreign currency investment.

The fund is designed for Garanti BBVA qualified investors who prefer to invest in USD and aim to exceed USD deposit yield in medium and long term with a balanced asset distribution.

Buy and Sell Opportunity in USD:
You can buy and sell fund participation shares in USD.

  • • Fund participation shares are divided into two groups as Group A (TL) and Group B (USD). Group A shares are those whose shares are traded in Turkish Lira and which are bought and sold by Turkish Lira payment; Group B shares are those whose prices are declared in US Dollars (USD) and are bought and sold in US Dollars (USD).
  • • It’s not possible to switch between share groups. If the fund share, which is paid in TL and US Dollars (USD), is refunded, the payment is made in the same currency.

Threshold Value

100% BIST-KYD USD Monthly Deposit Index

The threshold value for Group A shares issued in TL denominated shares is the TL-based return calculated as the result of translating the beginning and ending values of the BIST-KYD 1-Month USD Deposit Index into TL by using USD/TL bid rates announced by the Central Bank of the Republic of Turkey. (CBRT) For Group B shares issued in USD, the threshold value is the return of BIST-KYD USD Monthly Deposits Index of calculation period.

Trading Principles

You can buy and sell via Garanti BBVA branches in USD or TL basis.


(Day t represents the day on which the purchase and sale order is issued)



  • The shares bought in foreign currency are converted into cash in foreign currency, and the shares bought in Turkish Lira are converted into cash in Turkish Lira.
  • * Qualified Investors: Fund shares can only be bought by Qualified Investors as defined in the Communiqué. Qualified Investors are real and legal persons that have total asset amount equal to at least 1 million Turkish Liras in terms of cash in Turkish and/or foreign currencies and in terms of capital market instruments.
  • Calculation of Fund Price: The unit share value of Group A fund participation shares is calculated and declared in Turkish Lira and the unit share value of Group B fund participation shares is calculated and declared in US Dollar (USD) daily.

Taxation

Investors investing in USD are taxed on the basis of USD earnings, and investors investing in TL are taxed on the basis of TL earnings.

The withholding rate is 10% for individuals and 0% for legal entities.

  • Income derived from the participation shares of mutual funds is subject to a 10% withholding tax on income for fully taxpayer and limited taxpayer individuals. The withholding rate for fully taxpayer and limited taxpayer coorporations is 0%. Since the withholding is regarded as the final tax in terms of individuals, there is no need to submit a separate declaration in terms of income. In terms of legal entities, these revenues must be included in the statements of corporation tax.

Other Related Information

  • No entry or exit commission will be applied to the Fund Shares.
  • No performance fee will be charged to the Fund.

The performances are in USD and "Since Inception" is the return from the date of 23.07.2018,
conversion date of the Fund.

Fund Information - 27.11.2020

Risk Level 5
Net Asset Value 46.598.101 USD
Fund Unit Price
0,005045 USD
Fund Management Fee (Annual) 1,00 %
Launch Date 05.06.2009
Conversion Date 23.07.2018

Price & Return Graph

Fund Performance (%)

Criteria1 Week1 Month3 Months6 MonthsYTD1 Year3 YearsSince Inception
Performance (%)-0,091,761,961,15-0,85-0,33-5,38