RPT-Fitch assigns Yapi Kredi Bank's equity fund 'strong' fund quality rating
May 30 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has assigned Yapi Kredi Bank's Equity Fund, a fund managed by Yapi Kredi Portfoy, a 'Strong' Fund Quality Rating.
KEY RATING DRIVERS
The rating reflects the fund's disciplined approach to its selection and monitoring of asset allocation. Decisions concerning market exposure are driven by a fundamental, macroeconomic assessment, supplemented by technical and sentiment analysis, to take account of volatility in the Turkish equity market.
In its stock selection the fund focuses on identifying primarily mid and large cap companies with strong fundamentals and reasonably priced growth opportunities relative to their market valuation.
Decision making is concentrated in a formal investment committee which convenes on a weekly basis and combines the manager's investment expertise across assets classes. Defined allocation bands and active stock selection are key drivers in the portfolio construction process. The lead PM enjoys controlled freedom to operate within the given guidelines. The fund operates a distinct stop loss discipline under supervision of the independent risk department beyond tracking error and vale at risk limits.
The fund has outperformed the Lipper category "Global Equity Turkey" on both a three and five year basis at end April 2013. Fitch notes that the category is less homogenous as Turkish domiciled funds do not offer institutional share classes which would demand lower fees. The fund shows a Lipper Leader Consistent Return score of five (highest quintile) over three years and a score of three over five and 10 years as at end April 2013. Continued...