A quarterly committee file for foreign shares

Borsa Istanbul's participation index covers only companies listed in Istanbul. The Capital Markets Board of Türkiye (SPK) sets the rule for participation funds in its Guideline on Investment Funds (item 1.6): shares are selected from participation indices approved by SPK, or the selection rests on the decision of an adviser or an advisory committee. When a fund holds foreign shares, its committee makes that decision each period on its own evidence.

Today that evidence is scattered: different index lists, different results from different data providers, and long company reports that have to be read line by line. The four Islamic index families can reach different results for the same company.

We ask a company a question only where its published report does not separate an amount that the three ratios need. Your answer helps the fund's advisory committee read the report correctly. It is not a rating of the company, and we do not publish your reply without your permission.

• Within the threshold
• Above the threshold
• The range crosses the threshold, review needed
• Data missing

Where a report does not separate an item, the measurement is a range. The lower bound is the amount the documents prove. The upper bound also counts the items that cannot be proven. Nothing is estimated. If a report does not give an amount, the result reads “data missing” and a question for the company is prepared.

Every amount in the file links to its place in the company's annual or interim report to the US Securities and Exchange Commission (SEC). Opening the link takes you to the report itself. The amounts in the file are compared one by one with the amounts in the report, and any amount that cannot be compared is marked on the page.

Market value uses the price in the fund's own month-end valuation. Currencies are converted at the rates of the Central Bank of the Republic of Türkiye. So the file uses the same date as the fund's own report.

Each file has a data cut-off date. Reports published after that date do not enter the file. Rebuilding the file from the same data gives the same result.

Companies that do not report to the SEC are outside today's measurement. Sample measurements have been made from the annual reports of companies registered in the European Union; for these companies, the scope is agreed in the first call.

1. 1

   You tell us which funds the file should cover and share your committee's criterion document.

2. 2

   The file is delivered before your committee's next meeting. We set the delivery date together in the first call.

3. 3

   After the meeting, we review together how the committee used the file. Later quarters are planned from that review.

The funds' monthly portfolio reports are public. Apart from them, the file needs only your committee's criterion document.

• No buy, sell or hold suggestions. The file is not investment advice.
• Sağlama issues no religious rulings and no certificates.
• The file does not calculate purification amounts.
• The file itself does not assess the company's line of business; revenue lines in its report that may be relevant are marked with their amounts. Product and activity checks are described on a separate page.Product and activity checks→