Discretionary portfolio management refers to management of a portfolio consisting of financial instruments, excluding portfolios of collective investment companies, by a custodian on behalf of each customer for the purpose of providing a direct or indirect benefit to that customer. Discretionary portfolio management services include establishing and managing portfolios suitable for the customer’s financial position, risk-return preferences and investment term, monitoring those portfolios, and giving information to the customer in accordance with the applicable regulations of the Capital Market Board.
Discretionary portfolio management services may be provided by stock brokers, investment banks, development banks and portfolio management companies subject to obtaining the necessary license from the Capital Market Board.
A ‘Suitability test’ will be conducted first to the investor to be provided with discretionary portfolio management services. The purpose of the suitability test is to find out the customer’s investment purposes, financial position, knowledge and experience to select the best product and service for the customer.
Discretionary Portfolio Management Agreement will be entered by and between Kuveyt Türk Portföy and each customer to provide the Discretionary portfolio management services.
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