Strategic Approach to Equity Investments: BV1 – First Equity (TRY) Fund

In a period marked by inflationary pressures in both global and local markets, where the search for real returns has come to the forefront, accurate stock selection and active portfolio management have become the primary drivers of success.

In a period marked by inflationary pressures in both global and local markets, where the search for real returns has come to the forefront, accurate stock selection and active portfolio management have become the primary drivers of success. In volatile market conditions, funds that go beyond simply tracking an index—by correctly interpreting macroeconomic dynamics and focusing on company-specific valuations—are able to capture sustainable return opportunities for investors. At this point, the BV Portfolio First Equity (TRY) Fund (BV1) stands at the core of growth-oriented portfolios, offering both tax advantages and a professional management strategy.

Active Management Strategy

The BV1 Fund adopts a dynamic and proactive management approach rather than a static structure to capitalize on market opportunities. At the heart of the fund’s investment philosophy lies a rigorous analysis process extending from macroeconomic indicators to company financial statements:

• Top-Down Analysis: The strategy begins with an assessment of the global and local macroeconomic landscape. Interest rate policies, growth indicators, and geopolitical developments are analyzed to identify sectors expected to come to the forefront.
• Sector Focus: Following the macro analysis, greater weight is allocated to sectors expected to play a leading role in the economic cycle, such as real estate investment trusts (REITs), construction, cement, retail, holdings, banking, and mining.
• Bottom-Up Analysis: Within selected sectors, companies with strong balance sheets, stable cash flows, and discounted valuation multiples are individually identified through fundamental analysis and included in the portfolio.

Key Advantages of the BV1 Fund

The main features that distinguish BV1 from other investment vehicles include:

• Tax Advantage (Withholding Tax Exemption): Since at least 80% of the fund’s portfolio is continuously invested in equities, investors benefit from a 0% withholding tax on gains. This significantly enhances the compounding effect of long-term returns.
• Low Concentration Risk: In line with the “don’t put all your eggs in one basket” principle, investment in any single stock is limited to a maximum of 10% of the total portfolio. This serves as a crucial risk management mechanism, protecting the portfolio against sudden value losses in individual stocks.
• Targeting Outperformance vs. the Index: Using the BIST 100 Index as its benchmark, BV1 demonstrates the strength of active management through performance figures. According to TEFAS data as of 30/01/2026, while the BIST 100 Index delivered a 30% return over the last six months, the BV1 Fund outperformed with a 44% return.

Sector Preferences and Outlook

In the current economic environment, the BV1 Fund strategically focuses on sectors aligned with expectations of interest rate cuts and increased economic activity. The REIT, construction, and cement sectors are supported by urban transformation and infrastructure projects, while the retail sector stands out with strong cash flow generation. Banking and holding companies serve as portfolio anchors due to their low valuation multiples and high liquidity. The mining sector, on the other hand, enhances portfolio diversification by offering opportunities across the commodity cycle.

Conclusion

Success in equity markets depends on disciplined, data-driven management rather than emotional decision-making. BV1 – BV Portfolio First Equity (TRY) Fund provides investors with the opportunity to benefit from the growth potential of Borsa Istanbul through a professional investment filter. With its withholding tax advantage and objective of delivering returns above the benchmark, BV1 represents a strategic and indispensable investment fund for investors seeking to protect their capital against inflation and achieve real growth.