The Philosophy of Investment

Basic strategy within the portfolio management process is to create value within each investment portfolio by means of;

Sticking to the determined benchmark structure,

Decreasing short term market risks,

Making use of the value approach during fundamental analysis,

Paying attention to market timing during technical analysis,

Paying importance to liquidity and asset diversification,

Ensuring capital growth on a long term basis,

Giving emphasis on quality.

The Benchmark approach is the key factor of the fund management process. The benchmark of mutual funds are determined by the Fund Commission. On condition of adhering to the set out benchmark target, the Investment Committee determines the short and long term investment strategies. Any investment decisions taken during the portfolio management processes are made in line with the decisions met by the Investment Committee.

Rules of asset management and risk management are determined by the administrative commissions. On condition to remain within the limits determined by the administrative commissions, the market risk is managed by the portfolio manager. The portfolio manager is free to take any investment decisions within the limits.

Our philosophy in fund management cover servicing with a prudent, reliable, transparent and continuously evolving concept that gives highest priority to investor satisfaction and long term profit. Our company implements internationally accredited scientific methods and strategies to not only ensure high performance, but also a long term and stable profit.

Thanks to their dynamic portfolio management techniques which have proved to be valid, our professional portfolio managers are benefiting from the market opportunities to the maximum extent with minimum risk of influence by possible market negativities.

Investment plans conforming to the financial goals can be easily made via the funds with different investment strategies within the 'Akbank Fund Family'.

Investment Committee

The Ak Asset Management Investment Committee has been structured by a team consisting of professional managers.

Basic Functions of the Committee

Preparation of the strategy and action plans required for the achievement of the goals by the managed portfolios,

Review of mid-term strategy - action plans and evaluation of their results,

Formation of new strategies in required cases,

Assessment of weekly economical and political progress and providing assistance for the coming week,

To form fundamental, financial and technical analysis standards to guide the portfolio managers during the formation of the portfolios and trade transactions,

To develop supplemental products upon possible customer and/or portfolio manager demands,

To form the investment strategies and recommendations to be provided to the client with respect to the investment counseling activity supplied within the contract,

To form and monitor the performance assessment basics of the mutual funds and portfolio managers.

Reliability

The property assets of the Akbank mutual Funds are preserved under the guarantee of Takasbank, The Istanbul Stock Exchange (ISE) Settlement and Custody Bank, Inc. In addition, according to the Capital Markets Law, fund assets may not be pledged, assigned as guarantee and seized by third parties. In other words, the preservation of the fund assets is secured on a legal basis.

Audit

All fund related accounts and transactions of the founder, manager and safe-keeper of Akbank mutual Fund is under the supervision of the Capital Markets Board of Turkey (CMB). The independent external audit is performed by Ernst & Young.

Risk Distribution

Mutual funds consist of various investment instruments such as treasury bonds & bills, private borrowing instruments, equities and repos. Thus, the investor is secured against any risk which would be caused by a single investment instrument.

Variety

Owners of deposit may prefer our maximum profit mutual funds formed by different compositions and appropriate to their own risk and maturity profile.

Investment Advantage

Accruals in the mutual fund will have been utilized in compliance with a large- scale investor profile. Thus, small deposits will benefit from the investment advantages owned by the large investor.

Easy Transaction

The simple and easily comprehensible sales and purchase transactions of the mutual funds shares ensure serious benefits to the investors.

A and B Type fund share sales and purchase instructions may be given during working hours through the branch offices of Akbank T.A.Ş. and further means of banking for 24 hours.

According to the regulations of the Capital Markets board of Turkey (CMB) all of our investment funds except the Akbank B Type Money market Fund are subject to the Future Pricing Method.

Transaction Hours

Fund Type	Price	Settlement Day
Orders given before cutoff		SELL
B Type Long-term Bills & Bonds Fund	T+1	T+1
B Type Variable Fund	T+1	T+1
B Type Gold Fund	T+1	T+1
B Type Balanced For.Sec.Fund	T+1	T+4
B Type Frank. Temp. Umbrella Fund	T+1	T+5
B Type Commodity Fund*	Mondays	T+4
A Type Fund	T+1	T+2

Fund Type	Price	Settlement Day
Orders given after cutoff		SELL
B Type Long-term Bills & Bonds Fund	T+2	T+2
B Type Variable Fund	T+2	T+2
B Type Gold Fund	T+2	T+2
B Type Balanced For.Sec.Fund	T+2	T+5
B Type Frank. Temp. Umbrella Fund	T+2	T+6
B Type Commodity Fund*	Next Monday	T+4
A Type Fund	T+2	T+3

Fund Type	Price	Settlement Day
Orders given before cutoff		BUY
B Type Long-term Bills & Bonds Fund	T+1	T+1
B Type Variable Fund	T+1	T+1
B Type Gold Fund	T+1	T+1
B Type Balanced For.Sec.Fund	T+1	T+1
B Type Frank. Temp. Umbrella Fund	T+1	T+1
B Type Commodity Fund*	Mondays	T+1
A Type Fund	T+1	T+1

Fund Type	Price	Settlement Day
Orders given after cutoff		BUY
B Type Long-term Bills & Bonds Fund	T+2	T+2
B Type Variable Fund	T+2	T+2
B Type Gold Fund	T+2	T+2
B Type Balanced For.Sec.Fund	T+2	T+2
B Type Frank. Temp. Umbrella Fund	T+2	T+2
B Type Commodity Fund*	Next Monday	T+1
A Type Fund	T+2	T+2

Cutoff time is 12:00 for Gold Fund and 13:30 for the others. * The cutoff for the B Type Commodity Fund is 12:00 of every Monday. If Monday is not a business day, then the transaction price is the one that is announced on the next business day.

Why the A-Type Funds of Akbank should be preferred over Direct Equity Investment

Especially for individuals newly entered to the Stock Exchange the choice among numerous stocks and furthermore, appropriate investment timing is not easy. Since the decisions for the Akbank A-type funds are taken by specialists with the required support of research, there is principally less risk of wrong decisions.

The profits acquired from the transactions made at the markets are converted completely to mutual fund profit without the receipt of any profit (*except for the fund management fees).

*The daily management fee of our A-Type funds is 10 per hundred thousand (3.65% per annum). Only the Akbank A Type Premium Equity Fund is 6.85 per hundred thousand (2.50% per annum).

Why B Type Liquid Funds of Akbank should be preferred over Direct Money Market Investment

It grants the investors who do not wish to bear the risk of capital value decrease, the possibility of acquiring a profit parallel to the average market overnight repo values (to the money market return). It has been formed for investors with a minimum risk tolerance and therefore, invests on the repo (O/N) and money market instruments.

Akbank B-Type Money Market Fund that mainly keeps an overnight repo targets an income equivalent to and higher than the average Istanbul Stock Exchange overnight repo via the support with Takasbank Exchange Money Market transactions upon diversity of the repo and short-term borrowing instruments maturities.

The difficulties experienced with the brokers in the matters of communication and money transfer when acting individually, are eliminated with Akbank B-Type Money Market Fund while it also ensures to save time and workforce.

Investing on short term and liquid investment instruments, the fund grants the possibility of benefiting from any possible fluctuations that might arise in the fixed income markets. Thus, maximum benefit from short-term opportunities is guaranteed.

The interest rate achieved through the transactions made at the markets are completely converted to mutual fund profit without the receipt of any profit margin (*except for the fund management fees). This way, a profit parallel to the average market overnight repo rates is acquired.

* Daily management fee of our B-Type Money Market Fund is 7.5 per hundred thousand (2.74% per annum).

Why B-Type Bonds & Bills Fund should be preferred over Direct Bonds & Bills Investment

Just like equities, bonds and bills also gain or lose value depending on the market progress. For this reason, term preference in particular and sales-purchase timing is quite significant and requires specialty.

Although bonds and bills are cash-convertible prior maturity, this may be disadvantageous for the investor due to the reasons such as the sales-purchase price difference and similar. On the contrary, investment on the Akbank B-Type Bonds & Bills Fund does not feature such disadvantage.

Revenues acquired from the transactions made at the markets are completely converted mutual fund revenue without the collection of any profit margin (*except for the portfolio management fee).

The management fee for our B-Type Long term Bonds& Bills fund is 8 per hundred thousand per day (2.92% per annum), the Akbank B Type Premium Bonds&Bills Funds is 3.56 per hundred thousand per day (1.30% per annum) and the Akbank B Type Variable Fund is 8 per hundred thousand (2.92% per annum).