Press Release

JCR-VIS upgrades MQ Rating of ABL Asset Management Company Limited to AM2

Karachi, June 21, 2013: JCR-VIS Credit Rating Company Limited has upgraded the Management Quality Rating of ABL Asset Management Company Limited (ABL AMC) from ‘AM2-’ (AM Two Minus) to ‘AM2’ (AM Two). Outlook on the assigned rating has been assessed as ‘Stable’.

ABL AMC recently launched a new Islamic Stock Fund to increase their total product offering to seven open end funds under management. Including the new fund, the company actively manages 2 stock funds, 2 income funds, an Islamic Income fund, a money market fund and a capital protected fund. On a long term basis, performance of all funds (excluding the Islamic Stock Fund, which has limited history) remained consistently superior to the peer group median. Year-to-date performance of five funds (ABL Stock Fund, ABL Income Fund, ABL Govt. Securities Fund, ABL Islamic Income Fund and ABL Capital Protected Fund) featured in the top quartile in their respective categories.

Total Assets under Management (AUMs) displayed a 27% growth during the five months period from Dec’12 to May’13, amounting to Rs. 21.1b (Dec’12: Rs. 16.6b). The company is working on a fresh marketing strategy which involves training a dedicated team of business development officers, placed throughout the branch network of the parent bank to pursue growth targets of the AMC. Enhancement of retail investor base will be a key deliverable that will be tracked over time. Existing unit-holder profile depicts concentration in some funds.

During the year, a dedicated risk and compliance management function was set up which was further strengthened through hiring of suitably qualified personnel. Frequency and quality of internal reporting to the investment committee and top management has also seen improvement as a result. This is expected to facilitate the fund management team in maintaining risk profile of funds under management within desired levels. Financial profile of the AMC remains sound.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext. 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at 021-35311861-70 or fax to 021-35311873.

Jamal Abbas Zaidi
Deputy 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 2013 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