Discretionary Portfolio Management

Discretionary portfolio management – is a type of asset management performed by a professional manager, whose task is to preserve and increase the value of these funds. The purpose of asset management is to achieve maximum return for the investor at an acceptable risk level.

Term of Investment

The optimal investment term starts with 1-year horizon, because during long periods of time, the securities, in general, show growth and the market efficiency. However, even if you plan to invest for a shorter period of time, our team will select the right product or strategy for you.

Strategy selection and investment

Having decided to invest in discretionary portfolio management, the client fills out a questionnaire to determine own acceptable level of risk and return. Based on this questionnaire, the portfolio manager and the risk-manager determine investment horizon, level of target return and risk for the investment profile agreed with the client. The Company adheres to this document while managing client’s assets.

Client’s funds are placed in different types of securities in various industries. Securities and derivatives are selected at the Investment Committee by experienced managers based on the client's investment profile.

Returns

The Company does not have the right to make any guarantees and promises about the future effectiveness and return of asset management. It has the right to publish the historical returns that it has received in previous periods. However, it is important to note that the results of past activities of the portfolio manager do not guarantee future returns. However, the Company makes every effort to obtain a return that is proportionate to or higher than the risk level set by the client.

Risks

At the time of signing the investment management agreement, all the information regarding risks tied to asset management activities, is provided to investor. The risks associated with investing in discretionary portfolio management are:

  • Systematic risk: affects several financial institutions and their ability to perform their functions.
  • Market risk: associates itself in an unfavorable change in prices (value) of financial instruments owned due to changes in the political situation, a sharp devaluation of the currency, a crisis in government debt market, a turmoil in banking industry, force majeure, such as natural disasters and military actions, and as a result, causing decrease in returns or losses. Market risk includes the following: currency risk, interest rate risk, liquidity risk, credit risk and bankruptcy risk of the issuer of security. Depending on the chosen strategy, the market risk will be increasing (decreasing) prices of financial instruments. Clients should be aware that the value of financial instruments owned can both increase and decrease, and its growth in the past does not mean its growth in the future.
  • Legal risk: associates itself with the possible negative effects of the approval of legislation, regulations or standards of securities market regulatory organisations, or organisations regulating other sectors of the economy that may directly or indirectly lead to negative consequences for asset values. Legal risk is also associated with changes in tax legislation.
  • Operational risk: is the risk of incurring losses as a result of violation of the internal procedures of the Company, errors and unethical actions of its employees, malfunctions of Company’s technical equipment, equipment of its partners, stock exchanges, clearing and other organisations. Operational risk can result in canceled or complicated transactions and cause losses.

Basic principles of risk mitigation

  • Availability of an effective real time system of risk management and control.
  • Diversification of the investment portfolio by industry and financial instruments.
  • Investment limit system.
  • Stop-loss and take-profit limits with automated execution control.
  • Investment decision making by the Company’s Investment Committee.

Reporting

A client receives Activity Report prepared by the Company on a quarterly basis, which includes:

  • information on the dynamics of a monthly return on the Investment Portfolio for the 12 months preceding the date on which the report was prepared;
  • information on the value of the Investment Portfolio, determined at the end of each month, for the 12 months preceding the date on which the report was prepared;
  • information on the remuneration paid (to be paid) to the Company
  • information on the types of expenses incurred by the Company in relation to the management of the clients’ assets during the reporting period and reimbursed at the expense of clients’ assets;
  • other information required by applicable law.

At any convenient time, the client can access the information on portfolio by using Company’s online platform. Also a financial adviser can provide weekly reviews, forecasts and recommendations or reports at the request of the client.

Fees

Company's portfolio management fee is calculated individually and is determined based on complexity of the investment solutions. In addition, there are other costs associated with investment management:

  • payment for services of credit institutions, including fees for transactions, account maintenance and cash management services;
  • payment for services of stock exchanges, clearing organisations, depositories, professional participants of the securities market;
  • other expenses related to the maintenance of accounts in which client’s assets are stored and / or recorded, and other expenses related to transactions with client’s assets.

Вопрос-ответы
1. Что такое паевой инвестиционный фонд?
Паевой инвестиционный фонд — это форма коллективных инвестиций, при которой средства инвесторов объединяются для дальнейшего размещения профессиональными управляющими в ценные бумаги (или иные активы) с целью получения дохода. Если проще — это общий инвестиционный «котел», в который «скидываются» инвесторы. Деньгами из этого общего «котла» управляют профессионалы финансовых рынков. Они принимают решения: когда и что на деньги инвесторов покупать, а когда — продавать.
2. Что такое управляющая компания?
Это компания, имеющая соответствующую лицензию и занимающаяся управлением имуществом паевых фондов и (или) негосударственными пенсионных фондов и (или) средствами пенсионных накоплений. Это команда профессионалов, состоящая из аналитиков, портфельных менеджеров, трейдеров и других специалистов, чьей профессией является доверительное управление капиталами инвесторов.

Required information, website rules and precautions

First Heartland Capital JSC, which has a license to carry out investment portfolio management activities without the right to attract voluntary pension contributions No. 3.1.4.14 dated September 03, 2018, without expiration date.

By using this website, you officially agree with the rules of the website indicated below.

The rules are subject to change (these changes take effect from the moment they are published). If you continue to work with this website, after making changes - this means your unconditional consent to comply with the rules in full.

Intellectual property

All copyright and other intellectual property rights contained in this website and in its content, including and not limited to, the texts, illustrations, graphics and codes available on this website are owned by the website owner - Joint Stock Company First Heartland Capital.

It is not permitted to modify or copy the original website or its original contents (in whole or in part), as well as changing it by means of framing, inclusion into other websites or other publications.
It is not permitted to post links to this website on other sites without prior written permission of the Joint-Stock Company “First Heartland Capital”
It is not permitted to use the logo of the Joint-Stock Company “First Heartland Capital” without its prior written permission.

2. Website contents (content)

The information provided on this website is not related to specific investment projects, transactions, financial situation or individual customer needs. The information, forecasts and testimonies contained on this website are for informational purposes only and should not be interpreted as a proposal, recommendation, call or public offer to buy and / or sell or pass on any securities and / or financial instruments into trust management. All information on securities and financial instruments is purely indicative.

The forecasts shown on this website are presumptive and include, but are not limited to, forecasts of profitability, developments in global markets and changes in the regulatory environment. Forecasts provided take into account many factors and assumptions , as well as the current situation on world markets, which may change over time. Forecasts are indicative, “First Heartland Capital” Joint-Stock Company is not obliged to update them and execute them.

3. Profitability and risks

Risk - a certain level of risk when investing assets in the securities market.

Profitability is a possible, but unguaranteed level of income that a client can receive when investing.

Any information provided on this website, including but not limited to histograms, should not be construed as a guarantee of a certain return on investment in securities and / or other assets, or as a guarantee of the stability of the size of the possible returns associated with such investments. All information and materials provided on this website should not be construed as informing you of possible and accurate benefits. A certain profitability in the past is not a guarantee of profitability in the future. The value of assets can either decrease or increase, depending on the situation in the financial markets.

Before investing, each client should independently assess the economic risks and rewards, and the legal, tax and accounting implications of such transactions, as well as assess the possibility of accepting such risks.

4. Guarantees and assurances

All information and materials are provided without any guarantees and assurances. First Heartland Capital and its employees make no representations or warranties of any kind, including, without limitation, assurances, warranties or conditions regarding the accuracy, timeliness, completeness, absence of violation of rights, commercial value or validity of information and materials for any specific goal of the client. First Heartland Capital JSC and its employees do not bear any responsibility to customers or any third party for the consequences of any errors or omissions.

5. Disclaimer

If the use of this website resulted in direct or indirect losses (including loss of profits) arising from the use or inability to use the website, information and materials or inoperability, an error, omission, interruption, defect, downtime or a delay in transmission, a computer virus or a system failure, the website owner is not responsible for the users of the website.

6. Use of personal data

By submitting your personal data for processing (including the accumulation, storage, modification, addition, use, dissemination, depersonalization, blocking and destruction of personal data), you agree that this information will be used by First Heartland Capital, as well as by other partner companies of JSC First Heartland Capital, authorized bodies, servicing banks and other persons solely for the purpose of providing you with information support, the provision of necessary materials and information about new services, and other information relevant to the activities of First Heartland Capital JSC.

By submitting your personal data in accordance with the objectives and conditions above, you confirm your consent to the collection, processing and storage of your personal data, as well as the transfer (including cross-border data transfer) and distribution of your personal data for the purposes provided above, including promotion and improvement of the services of JSC “First Heartland Capital”, through direct contacts using the means of communication.

7. Regulations

Access to the electronic version of the regulatory legal acts of the Republic of Kazakhstan on this site is provided solely for informational purposes. If any regulatory legal act or its part loses its force, then First Heartland Capital JSC is not obliged to update the list of regulatory legal acts of the Republic of Kazakhstan on the website in accordance with the legislation of the Republic of Kazakhstan.

Contact us