The activity of individual portfolio management is the management of a portfolio consisting of financial assets as a proxy, in the name and on behalf of each customer for obtaining direct or indirect benefits, excluding those of collective investment schemes. Individual portfolio management comprises of creating and managing portfolios in accordance with the financial situation, risk-return preferences and investment term of customers, and following up such portfolio, and informing the customer in accordance with the relevant regulations of Capital Markets Board.
Individual portfolio management activity may be conducted by intermediary institutions, investment and development banks and portfolio management companies, provided that an authorization from Capital Markets Board is granted.
Initially “suitability test” is applied to investor who will be offered individual portfolio management service. The purpose of suitability test is to state the customer’s investment objectives, financial situation, information and experience in order to provide the most suitable product and service to the investor.
For individual portfolio management service, “Discretionary Portfolio Management Agreement” is signed between KT Portfoy and investor.