Portfolio Management Process

During the portfolio management process, all capital market transactions are processed directly through organised markets in the name of the investor. The implementation consists of 4 main steps:

The most important step in the initial phase is to define your risk tolerance. Depending on your risk preferences, the portfolio manager makes investment decisions while remaining within the agreed upon universe. Your benchmark is determined based on your strategic goals and risk tolerance. It is the main criterion for the evaluation of portfolio performance, while the main goal of the portfolio manager is to add/create value above your benchmark.

The investor’s risk profile and the portfolio’s particular benchmark form the two main pillars of the portfolio strategy. Short-term and long-term investment actions are determined by the “Strategy Committee” of Ak Asset Management. In the light of these strategies, portfolio managers aim to add value by tactical asset allocation, security selection or changes to the portfolio duration, remaining within the limitations of the investment strategy and client preferences.

Portfolios are regularly evaluated and performance is measured against the pre-determined benchmark. On a periodical basis; the strategy, risk preferences and the benchmark may be revised at subsequent client meetings.

A periodical report, called the Performance Evaluation Report, which contains all the details of the portfolio and related transactions, is sent to clients at a pre-determined frequency. Additionally, all information, including portfolio details, can be received from the Ak Asset Management DPM Unit whenever required.