Press Release

JCR-VIS upgrades Management Quality Rating of ABL Asset Management Company Limited to AM3+ with a Positive Outlook
 

Karachi, December 31, 2010: JCR-VIS Credit Rating Company Limited has upgraded the Management Quality Rating of ABL Asset Management Company Limited (ABL AMC) to ‘AM3+’ (AM Three Plus) from ‘AM3’ (AM Three).

The rating action takes into account improvement in systems and controls and performance of the asset management company since last review. Going forward, the business plan of the company may facilitate it to further strengthen its market position. Outlook on the rating has thus been revised from ‘Stable’ to ‘Positive’.

ABL AMC is a wholly owned subsidiary of Allied Bank Limited and benefits from the bank’s strong franchise and widespread branch network. After the launch of two new funds during 2010, the AMC is now managing four open-end funds, including two money market funds, an income fund and a stock fund. Performance of the two older funds was strong with both funds being among the top performing funds in terms of returns in FY10. Total AUMs of ABL AMC increased from Rs. 7b as at June 30, 2009 to Rs. 8.7b as at June 30, 2010 and further to Rs. 12b as at November 30, 2010. Market share of ABL AMC increased to 4.4% at the end of FY10 from 3.4% at the end of the preceding year. Going forward, the company plans to increase its market presence through further diversification in its product offerings.

The management of the fund strengthened during FY10, with the appointment of a new Chief Executive Officer (CEO) and a Chief Investment Officer (CIO). The new management has focused on strengthening the research and compliance functions and put in place the risk management function. Going forward, these functions need to be aligned with the growing needs of the company.

The company utilizes the branch network of ABL for fund distribution. While share of retail investors has increased progressively, corporate investors still comprise major proportion of funds under management. JCR-VIS will continue to monitor performance of the funds and trends in unit holder concentration, going forward.

For further information on this rating announcement, please contact Ms. Javed A. Callea (Ext: 510) or Mr. Zia M Usmani (Ext: 507) at 021-35311861-70 or fax to 021-35311873.


Faheem Ahmad
President & CEO

________________________________________________________________________________________________________________________________
Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. JCR-VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2010 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited