C1T3L1 · Revised 2026-10-26

Decision and objectives

Practical task: Create a responsibility map from the TI1 document set

Objectives: Assign responsibilities to the fund founder manager custodian and unit holder; Annotate a dated prospectus by role; Distinguish portfolio loss from custody failure.

Required prior knowledge: C1T2L4. Classification: domestic. Revision: 2026-10-26. All fictional names, prices, rates, fees, calendars and tax schedules below are hypothetical unless explicitly identified as a dated document observation.

A fund has several responsible parties, each with a different job. Calling all of them “the bank” makes it difficult to read a disclosure or diagnose a missing payment. The task is to map responsibility before assessing performance. Keep an investment decision, asset safekeeping, distribution instruction and investor record as separate processes even when related entities perform them.

Mechanics

The founder establishes and represents the fund under its governing documents. The portfolio manager makes investment decisions within the mandate. The portfolio custodian performs safekeeping and related controls under the applicable framework. The unit holder owns the participation claim and bears the portfolio result. A distributor accepts and routes investor orders; a central record identifies holdings. Custody and recordkeeping do not imply that those providers guarantee market performance.

Use a responsibility matrix with four columns: action, responsible party, evidence and exception route. For an investment-policy breach, start with the founder/manager's duties; for a mismatched unit balance, reconcile distributor and central records; for a delayed redemption, trace both instruction processing and settlement.

Price and return drivers

A service provider's duty and a financial guarantee are different legal statements. A custodian can be responsible for failing its custody obligations without becoming responsible for a lawful portfolio price decline. The economic return belongs to the fund's asset/liability ledger and is allocated through units. For unchanged units and no distributions, a 10% portfolio-value decline implies a 10% unit-value decline, irrespective of the provider's brand.

Worked case

Dated document annotation, checked 2026-10-26: TI1's prospectus sections I and IV identify the founder/manager and portfolio custodian roles; the investor form's important-information section provides a short-form cross-check. Record the document dates, 2026-09-15 prospectus notification and 2026-09-21 investor form, before comparing them. This is a reading exercise, not a recommendation of that fund.

For a separate hypothetical accounting example, a fund has TRY 10,000,000 net assets and 1,000,000 units. An investor holds 15,000 units, or 1.5%. A lawful portfolio loss of TRY 400,000, with no subscriptions or redemptions, reduces net assets to TRY 9,600,000. Unit value falls from TRY 10 to TRY 9.60; the investor's value falls from TRY 150,000 to TRY 144,000. The TRY 6,000 decline is not automatically a claim against the custodian.

Adverse case

Now the distributor statement shows 15,000 units but a second record shows only 14,500. The 500-unit discrepancy, worth TRY 4,800 at the hypothetical TRY 9.60 mark, is a reconciliation exception. It could reflect timing, a pending transaction or an error; it is not evidence that the portfolio lost another 3.3333%. Obtain transaction identifiers and settlement dates before making accusations or placing an offsetting trade. A record discrepancy and a market loss need different responses.

Practical use

Domestic units are acquired through the fund's permitted channels, with the relevant account and central-record arrangements. Before investing, identify the legal provider names in current documents and retain the order confirmation. Operational records should include instruction time, quantity, applicable price, fees and settlement cash. Fund-level management and custody expenses may reduce net asset value; investor account charges and taxes can occur separately. An actual tax treatment requires year, residence/status, acquisition date and effective rule. No rate is applied in this responsibility lesson.

Decision boundaries

Use the map to route questions and evaluate governance. It does not replace a full prospectus or determine legal liability in a dispute. Decline a product whose documents do not identify a responsible manager, custody arrangement or distribution entity. Do not reject a transparent fund solely because the founder and custodian share a group name; analyze the legal separation and controls. Conversely, separate logos alone are not proof of effective controls.

Practice and references

Exercise: hypothetical net assets are TRY 8,000,000 and units 400,000. A learner holds 6,000 units. Portfolio value falls TRY 800,000 with unchanged units. Answer: initial unit TRY 20, holding TRY 120,000 and fraction 1.5%; new unit TRY 18, holding TRY 108,000, loss TRY 12,000. State which party made the investment decisions and which record should verify the unit quantity. The calculation allocates a market result; it does not establish provider misconduct.

Takeaway: responsibility for a process is distinct from a guarantee of investment value.

Reference guide: mutual-fund; ownership-fraction; founder; portfolio-manager; portfolio-custodian; unit-holder. Next: C1T3L2. Topic test.

Sources: SPK Communique III-52.1 — Articles 3–6, 14–15, 24–27; Annexes 2–3; date 2013-07-09; consolidated text lists amendments through 2024-03-01; checked 2026-10-26; MKK TEFAS Platform — Fund-unit transfers through MKK–Takasbank integration; date not stated; retrieved 2026-10-26; checked 2026-10-26; TI1 prospectus attached to KAP notification 1662920 — Sections I–III; IV asset separation; V valuation; VI dealing; VII expenses; VIII taxation; IX disclosure; date 2026-09-15 notification; checked 2026-10-26; TI1 Investor Information Form attached to KAP notification 1665983 — Pages 1–2: identity; risk profile; expenses; important information; date 2026-09-21; checked 2026-10-26. Source records: sources.json. Check the cited rule dates and confirm current dealing terms before any transaction.

Shared reference guide