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Yapı Kredi Asset Management Annual Report 2012
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A. Discretionary Portfolio Management (DPM)
The Discretionary Portfolio Management (DPM) Unit manages portfolios on
behalf of institutional investors such as insurance companies, foundations
and corporations as well as high net worth individuals. The DPM Unit
provides professional asset management services for its clients in order
to meet each client’s specified investment goals by using custom-tailored
portfolios. And the DPM funds are managed with priority of minimizing
risks while maximizing returns. Special emphasis is placed on actively
managing funds considering the risk appetite and investment habits of
each individual client. Hence, portfolio structures which best fit the client
portfolios are established depending on the client’s risk/return preferences
and requirements. The DPM Unit also supports clients in making their own
decisions in capital markets transactions by drawing upon its strength,
experience and expertise in the financial markets.
Disciplined Asset Selection Process
All asset selection activities of the Unit are carried out according to clearly
established internal regulations, which require the review, approval and
constant monitoring of all relevant bodies vis-à-vis investment decisions.
During this process, special attention is paid to clients’ risk tolerance
and benchmark assets. Rigorous fundamental and quantitative analysis
provides the necessary framework for asset selection.
High Liquidity
DPM portfolios are composed of highly liquid assets, which make it
possible to enter and exit these assets during interim periods at very low
transaction costs. In addition, the Unit charges no commission in the event
of account closure.
Dedicated Client Relations
YKAM’s dedicated client representatives continuously provide in-depth
personal analysis of the clients’ portfolios through market highlights and
professional comments. YKAM takes special care to communicate clearly
and frequently with clients through quarterly meetings on economic
developments, investment strategies and portfolio performances as well as
tailor-made reporting at requested intervals.
Benchmark Based Dynamic Management Style
The DPM Unit constantly monitors its performance against various
indexes as well as custom benchmarks that consist of several indices. The
benchmarks are taken into consideration during the portfolio performance
analysis, accordingly, plays an important role in portfolio management. All
portfolios are managed proactively by considering the effects of changing
micro and macro variables on each asset class and responding to these
changes appropriately.
Comprehensive Risk Management Process
The risk indicators of all DPM portfolios are constantly monitored by the
Risk Management and Compliance Department and regularly overviewed
at the weekly Risk Committee. The value of risk calculations are tracked
closely while stress-test calculations are undertaken using the RiskTurk
application.
TL Portfolio models are as follows:
•
TL Deposit
•
TL Benchmark
•
TL Benchmark Dynamic
•
TL Absolute Return
Equity Portfolio models are as follows:
•
Equity
•
Equity Dynamic
Foreign Exchange Portfolio models are as follows:
•
FX Deposit (EUR/USD)
•
FX Dynamic (EUR/USD)
DPM in 2012
Market Overview
2012 was a year of beating the benchmarks in all equity portfolio groups
and funds with a wide margin. In terms of fixed income groups, by closely
monitoring CBRT polices, decelerating inflation and narrowing CAD figures,
we successfully finished the year above the benchmarks in every funds/
portfolio groups. For the FX market, 2012 was a year of stabilization in
rates mostly driven by CBRT policies. In summary YKAM’s all DPM products
including funds/portfolio groups outperformed the benchmark and total
size of DPM increased by 42.6%
Key Performance Indicators
2012
2011
2010
Number of Clients
358
285
316
Institutional
20
15
24
Individual
338
270
292
Assets under Management (TL mn)
1,246
874
960
Institutional
656
446
462
Individual
589
428
498
Products and Services
The DPM Unit provides professional asset management services for its clients in order to meet
each client’s specified investment objectives by using custom-tailored portfolios.
Okan UZUNOĞLU
Head of Discretionary Portfolio Management