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About DJIMTR
BMD Securities, Inc. Dow Jones DJIM Turkey
Exchange Traded Fund is a Dow Jones Islamic Market Turkey Index based ETF.
Fund shares are traded on Istanbul Stock Exchange. Investors can buy and sell
BMD Securities, Inc. Dow Jones DJIM Turkey ETF as they buy and sell other
stocks.
Exchange Traded Fund is a special variation of an investment fund that the
fund portfolio is formed of stocks in an index by their proportions in the
index and fund shares are traded in the stock exchange. Thus it provides the
investors the opportunity to buy and sell the index that the fund represents.
Net Asset Value of the fund that will be published on the web site shows
portion of the total value of stocks and cash component in each fund share.
Net Asset Value is updated at least once every minute during Istanbul Stock
Exchange session hours and published both by the fund’s web site and data
providing institutions. Thus, investors can observe the difference between
fund’s portfolio value and the price traded in stock exchange.
Dow Jones Islamic Market Turkey
Index, which is tracked by BMD Securities, Inc. Dow Jones DJIM Turkey ETF is
an index launched by Dow Jones. At present, it includes stocks that are
traded on the Istanbul Stock Exchange. Dow Jones, as its other indexes, determines
the companies that will be in the index by considering the floating market
capital of the companies. Additionally, Dow Jones takes into account
appropriateness of some financial ratios and operating fields of the
companies based on Dow Jones Islamic Market criteria. The first step is to
exclude from the index universe any industry group that represents an
incompatible line of business. According to the criteria, also excluded are
companies whose total debt divided by trailing 12-month average market capitalization
is 33% or more, those whose cash plus interest-bearing securities divided by
trailing 12-month average market capitalization is 33% or more, and those
whose accounts receivables divided by total assets is 45% or more. Detailed
information about the index methodology can be found at http://www.djindexes.com.
The exchange of the fund shares with stocks in the fund portfolio is made by
Creation and Redemption transactions. Creation and Redemption for BMD
Securities, Inc. Dow Jones DJIM Turkey ETF can be carried out with a minimum
of 10,000 shares or with its multiples. The minimum number of shares with the
transactions can be completed is called the ETF Unit. Investors can provide
the necessary cash and stocks composition in their portfolio in return for
fund shares in the Creation process. In Redemption, they give out their fund
shares to the fund in return for the cash and stocks composition
corresponding to the fund shares. The composition of the ETF Unit is
announced every morning before stock market session starts.
Dividends delivered by stocks in the BMD Securities, Inc. Dow Jones DJIM
Turkey ETF portfolio will not be reinvested and held in the portfolio, they
will be transferred to the investors proportionally to their fund shares
after expenses, legal payments and fees are deducted. Thus investors can
differentiate their dividends delivered by stocks in the fund portfolio and
the fund earnings. They can also immediately get their dividends without waiting
sale of their fund shares.
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