Santiago Principles Self-Assessment

Turkey Wealth Fund

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  • Pillar 1: Legal
  • Pillar 2: Institutional
  • Pillar 3: Investment
Principle 1

1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective(s).

1.1. The legal framework for the SWF should ensure legal soundness of the SWF and its transactions.

1.2. The key features of the SWF’s legal basis and structure, as well as the legal relationship between the SWF and other state bodies, should be publicly disclosed.

Turkey Wealth Fund Management Company (hereinafter referred as ‘TWF ManCo’) was established with the Law No. 6741 on 19 August 2016 as a joint-stock company under Turkish Commercial Code as the exclusive fund manager of Turkey Wealth Fund (hereinafter referred as ‘TWF’).

The Decree of the Council of Ministers dated 17 October 2016 (hereinafter referred as the ‘Decree’) regarding the process and principles of the structure and operations was published in the official gazette on 09 November 2016.

The Law No. 6741 and the Decree are publicly available information under the Official Gazette of the Republic of Turkey and TWF’s website.

Following the Law No. 6741 and the Decree, TWF ManCo’s Articles of Association and TWF’s by-laws were also published in the Trade Registry Gazette on 28 December 2016 and 30 January 2017 respectively.

Principle 6

6. The governance framework for the SWF should be sound and establish a clear and effective division of roles and responsibilities in order to facilitate accountability and operational independence in the management of the SWF to pursue its objectives.

Following Article 6 of the Decree, organizational structure and job descriptions are clearly defined. As per Article 19 of the Decree; Executive, Human Resources, Corporate Governance, Risk and Audit committees which are attached to the Board are established under the scope of Turkish Capital Markets Law No. 6362 in accordance with the corporate governance regulations.

Principle 18

18. The SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy, as set by the owner or the governing body(ies), and be based on sound portfolio management principles.

18.1. The investment policy should guide the SWF’s financial risk exposures and the possible use of leverage.

18.2. The investment policy should address the extent to which internal and/or external investment managers are used, the range of their activities and authority, and the process by which they are selected and their performance monitored.

18.3. A description of the investment policy of the SWF should be publicly disclosed.

TWF cleared its mandate and received approval for its strategic investment plan through separate Board resolutions on 24 October 2018 and 17 April 2019 respectively.

All investment decisions are subject to final approval by the Board and TWF will continue publishing its annual reports through its website as per Article 18 of the Decree.