FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2010
GARANTI ASSET MANAGEMENT
Providing a unique service with high added
value to investors, Garanti Asset
Management has won acclaim at national
and international platforms.
Gur Cagdas
General Manager
Garanti Portfoy (Garanti Asset Management) a
subsidiary (100%) of Turkiye Garanti Bankasi
A.S. (Garanti Bank); was founded as the first
asset management company of Turkey in 1997.
The Company holds asset management and
investment consultancy authorization
certificates and serves domestic and foreign
corporate and individual investors as its target
group. Garanti Asset Management serves in
the following business lines: Mutual Funds
Management, Pension Funds Management,
Discretionary Portfolio Management and
Alternative Investments.
Garanti Asset Management built its investment
philosophy on the following grounds: to
manage customer assets in the most effective
manner possible; to ensure sustainable asset
growth; to reflect investor demands to portfolio
structures in the swiftest and most appropriate
manner and to keep continuous control over
risk levels. The success of Garanti Asset
Management’s investment policy lies in
systematically researching various investment
instruments, effective decision-making
processes, and subjecting all investment
decisions to disciplined and persistent risk
management.
Providing a unique service with high added
value to investors with 61 professional staff,
Garanti Asset Management has won acclaim at
national and international platforms, thanks to
its effective business approach and robust
brand image.
Garanti Asset Management’s decision-making
process is composed of two basic steps:
determination of asset allocation and selection
of assets.
The determination of asset allocation is the first
step in the decision-making process at Garanti
Asset Management. The General Manager and
Deputy General Managers are briefed on
targets and expectations during the weekly
meetings of the Strategy Committee. Scenarios
are analyzed by the committee to determine
the returns expected for each investment
instrument; alternative scenarios are
considered and debated in detail to decide on
the best relative weights for investment
vehicles. The results of the strategies are
followed and their impacts on performance are
reviewed during a daily morning meeting.
Garanti Asset Management also obtains
consultancy support from third parties before
the Strategy Committee within the framework of
the circumstances of the day.
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Selection Process is the second step of the
decision-making procedure at Garanti Asset
Management. In the selection of fixed income
instruments, decisions taken at the Strategy
Committee, which take account of
macroeconomic data and expectations are
applied to the portfolios by the initiatives of
related coordinators and fund managers. Garanti Asset Management boasts its perfect
distribution channel. We are effectively using
the distribution channel which we developed
with our main shareholder, Garanti Bank. We
are highly ambitious in this segment. We boast
the best practice in Turkey while proactively
and continuously taking part and working in the
field in collaboration with Garanti Bank.
The selection of equities is coordinated by the
Equity Selection Committee. This committee,
comprised of investment analysts and equity
fund/portfolio managers, evaluates related
research reports in a comprehensive manner
and initiates the equity selection process with
correct market timing. At the end of the
committee meeting, model portfolios are
designed and asset allocations are determined
by evaluating return potentials of equities. Garanti Asset Management continues to press
ahead with its assertion of being the best and
the most effective provider of services in the
Turkish asset management industry and moved
ahead with its partnership, and also as the first
company of the sector through realizing new
projects and products.
In addition to ordinary committee meetings,
Garanti Asset Management closely monitors
immediate developments on economic and
political platforms. Within this framework, the
Company may make immediate adjustments in
investment decisions, which it swiftly applies to
the portfolios.
Garanti Asset Management employs effective
and active risk management mechanisms
which encompass all investment processes. As
part of its pre-defined risk control mechanisms,
the Company continuously monitors the
expected returns and maximum sustainable
losses for all investment instruments. In other
words, at Garanti Asset Management, the yield
and loss potential of each investment is known
in advance.
Garanti Asset Management employs two
different resources in its market risk
management activities,:
• The Management Information System (MIS)
reporting is one of the techniques utilized by
Garanti Asset Management in the field of risk
management. MIS reporting, which is highly
precious in terms of summarizing all of the
corporation’s risks, is simple, brief and
exclusive. Data fed into the system designed
by Rasyonet is submitted over infrastructure
supplied by Garanti Technology.
• The risk management product developed
with Rasyonet allows assessment of market
risks, as well as the liquidity risk.
The Capital Guaranteed Fund, the Principal
Protected Fund and Hedge Fund were all key
steps taken in 2009 within our synergic
cooperation with Garanti Bank. Having offered
guaranteed and protecting funds to the market
just at the right point in the conjuncture,
Garanti Bank became one of the leading
issuers in this field through the robust
cooperation developed with our company.
At a time when change has gained pace and is
effectively experience, we as a team are
extremely proud to present Garanti Asset
Management as a shining example of
performance and sustainability.
As our 13-year past offers an insight to the
history of the collective investment instruments
industry in our country, growth and
performance that we have shown is in view as
a real example of sustainability.
The “Istanbull Fund”, a hedge fund founded by
Garanti Bank, which is managed by Garanti
Asset Management, was registered to the
Capital Markets Board in April 2009. Managing
Turkey’s largest hedge fund will present an
exciting expansion for Garanti Asset
Management.
The fund addresses a segment of qualified
investors seeking high returns by taking high
risks. These funds primarily aim at those
institutions and individuals with large scale
portfolios in Turkey.
The Istanbull Fund, with its maximum leverage
rate of 3, invests in various money and capital
market instruments including, but not limited
to, fixed income securities, government bonds,
equities, private sector bonds, forward
exchange contracts and loan derivatives.