Company to manage Sovereign Wealth Fund established

Published 26.08.2016 22:58

A management company for the Sovereign Wealth Fund (SWF), which will be in charge of founding and managing the SWF and its relevant subsidiary funds, has been established.

The legislation to establish the SWF Management Inc., as well as amendments to various laws, has taken effect after being published in the official gazette.

The management company is in charge of contributing to instrumental diversity and depth in capital markets, the main activity areas of which are to found and manage funds under the Prime Ministry, draw domestic public assets into the economy, procure external sources and join strategic and large-scale investments. The sphere of activity of the SWF management company is to establish and manage the SWF and subsidiary funds.

The company will act in accordance with the objectives cited in the strategic investment plan by taking liquidity, investment, risk and return preferences into consideration. On behalf of the SWF, it will be in charge of transactions with respect to the shares of domestic and foreign companies; the shares and debt instruments of domestic and foreign issuers; the derivative instruments of the fund shares of capital market instruments that are issued on the basis of precious metals and assets; lease certificates; real estate certificates and the trade of specially-designed foreign investment instruments and other instruments.

The company's initial capital of TL 50 million ($17 million) will be covered by the Privatization Fund. The shares representing this completely paid capital will belong to the Privatization Administration and the company's stock certificates will be in the name of the holders. The Prime Ministry will assign the company's chairman, general manager and the board of management, which will have at least five members.

The board of management will prepare a three-year strategic plan for the SWF Management Company, subsidiary institutions and subsidiary funds. The plan will take effect after receiving approval from the Cabinet.

The SWF's resources will consist of institutions and assets that are taken into the scope of the privatization program by the High Board of Privatization, as well as cash surpluses that will be transferred to the SWF from the Privatization Fund.

Any other registerable values that are obtained as a result of activities will be properly registered on behalf of the SWF. The company, and various others to be established, as well as the SWF and subsidiary funds, will be independently supervised. The company will comply with institutional management regulations under the Capital Market Law.

The SWF's assets, as well as the assets and rights that are transferred to be managed by the company, will be separated from the company's assets.

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