Discretionary Asset Management - Egeli & Co. Asset Management

“Egeli & Co. Asset Management’s investment philosophy is to give priority to the needs of investors”

First important point in the investment management process is to determine the investor’s risk profile and the understanding the underlying reasons why they are in need of consultancy. Each investor’s risk attitude is different. Risk and return on investment are intertwined. It is crucial to define the investor’s risk/return expectations. This is the creation of the base of the investment strategy. The allocation of the portfolio should be mutually determined and portfolio should managed according to these principles.

In other words, assets owned by the wealthy investors should be managed according to mutual specified risk/return expectations, benchmark and investment preferences. In line with risk profile of the portfolio, benchmark is determined at the beginning of the asset management process. At this stage, optimal portfolio planning and strategies are created corresponding to the investment objectives.

According to the strategy determined mutually, asset management agreement is signed. With the agreement, investor authorizes Egeli & Co. Asset Management for portfolio management. Egeli & Co. Asset Management can’t retain the asset of its investors in its own accounts and can’t associate with its own assets. Custody of investor’s assets is done by Custody Banks which are approved by BRSA and authorized by CMB. In this context, with the signing of the portfolio management agreement, the required documents and contracts for Custody Bank is also signed, simultaneously. Custody Banks are responsible from custody, monitoring and reporting of all the assets managed. Custody Banks are obliged to provide custody services for managed assets in a way to prevent a loss or damage. On regular bases, Custody Bank’s documentation and registration schemes should follow the assets, rights and transaction on customer base. Also reporting is done by Custody Bank, on a regular base. Also instant information about assets managed, can be obtained from the webpage of Custody Bank.

The most distinctive feature of Egeli & Co. Asset Management is to be an independent asset manager. This provides a global perspective to the Company.

In the management of portfolio, asset allocation is crucial decision for effective long-term return on the investment performance. The most important factor for allocation, creation and management of a portfolio is to determine the amount and the type of capital market instruments that will form the portfolio.

Egeli & Co. Asset Management adopted the four core principles of Corporate Governance which are equality, transparency, accountability and responsibility. Except for periodic reporting done by the Custodian Bank, monthly e-mailing and mailing about portfolio transactions, costs and the latest performance of the portfolio reporting is done by Egeli & Co. Asset Management.

The Investment Committee approach is the competitive advantage of Egeli & Co. Asset Management. Execution of investment strategy, evaluation of portfolio performance and conformity assessment of leading investment decisions are the major duties of Investment Committee.