Investment Process

• Is Asset Management’s (Is Asset) main goal is to ensure the sustainable and stable growth of our clients’ assets by applying a well-structured investment process. Is Asset’s professional team keeps abreast of developments in national and international markets in order to take advantage of potential opportunities for its domestic and foreign clients. While portfolio managers capitalize on return opportunities through their active asset management strategies, they always apply to the principle of ‘minimum risk, maximum return’.
• During the investment process, Is Asset utilizes internationally recognized top-down and bottom-up analysis. The top-down investment process starts with a detailed analysis of macroeconomic indicators of world economies and global markets, before proceeding to a determination of asset allocation of financial instruments. Short and long-term positions in such assets are determined in accordance with future expectations. In the bottom-up investment process, on the other hand, the focus is on the selection of securities with high returns among predetermined financial assets. Durations are set out for fixed income instruments while sector and company preferences are prominent factors in equities.
• Investment decisions are taken in line with Is Asset’s investment philosophy. Management of each portfolio falls under the responsibility of the related department manager. The Investment Committee determines the principles of portfolio management in order to ensure that the investment process proceeds successfully and tracks closely the performances of portfolios. During the unstable market conditions, the Investment Committee evaluates the investment strategies for the current market conditions. In addition, portfolios are continuously monitored by the Risk Committee to determine whether or not they comply with client-specific investment constraints and risk perceptions.
• The Research Department analysis local and global economy and financial markets for portfolio managers in an up-to-date, proper and independent manner through detailed reports in decision making process. Financial assets are evaluated and guiding studies carried out in respect to asset allocations, based on the strategy reports prepared by the Department. A pool of investible equities is constituted by the Research Department among the sectors with high growth potential which are expected to raise their profitability with their investments as well as companies that will expand their operations in such sectors. The model portfolio consists of 12 equities chosen this pool to assist portfolio managers in selection of equity investments.
• Risk Management is the process of determining and measuring risk factors that may adversely affect managed portfolios as well as the process of minimizing potential risks. Any risks that the portfolios may be exposed to are regularly evaluated, monitored and reported through of internationally recognized risk assessment methods. At times of increased market volatility, any portfolio manager who exceeds the risk level assigned to them in the portfolios under their responsibility is reported to the Risk Committee by the Risk Management Department. The Committee issues necessary warning to the portfolio manager to reduce the risk level with a timely manner.