Karachi, December 30, 2016: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the Management Quality Rating of ABL Asset Management Company Limited (ABL AMC) at ‘AM2+’ (AM-Two-Plus) with a ‘Stable’ Outlook. The previous rating action was announced on May 04, 2016.
ABL Asset Management Company Limited (ABL AMC) is a wholly owned subsidiary of Allied Bank Limited (ABL); the former has been in operations since 2007. Market share (ex-associate investment) increased to 5.9% (FY15: 5.5%) at end-FY16 while market share of ABL AMC (adjusted for Fund of Funds) stood at 5.5% (FY15: 6.1%). Retail AUMs have remained stagnant at end-June’2016. Decline in proportion of associate investment has been made up by increase in AUMs from un-related corporates. To improve AUM profile, a number of initiatives including increasing size of sales force and introduction of alternate delivery channels are being undertaken by the management.
During 2016, senior management team witnessed turnover at two key positions of which CEO has been hired from the parent bank to spearhead the management function. The second vacant position will be filled soon by management. Organization structure changes since last review include hiring at the product development function. Overall scope and functioning of the different control functions is adequate. Furthermore, the company has also maintained the Information Security Management System (ISMS) certification, ISMS ISO 27001 in FY16.
During FY16, (excluding Funds of Funds schemes and Pension Funds), fund performance of most funds featured in the first and second quartile. Peer ranking of ABL Cash Fund and ABL Islamic Stock Fund has witnessed noticeable improvement in the ongoing year (FY17 YTD). As one of the key rating parameters, JCR-VIS will continue to monitor the performance of assets under management across different asset classes over time.
For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 201) or the undersigned (Ext: 208) at 35311861-70 or fax to 35311872-3.
Mohammed Khalid Ali
Applicable Rating Criteria: Asset Management Companies (March 2016)
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