Press Release

VIS Reaffirms Management Quality Rating of ABL Asset Management Company Limited
 

Karachi, December 31, 2019: VIS Credit Rating Company Limited (VIS) has reaffirmed the Management Quality Rating (MQR) of ABL Asset Management Company (ABL AMC) at “AM2++’ (AM-Two-Double Plus). The medium to long-term rating of ‘AM2++’ exhibits very good management characteristics. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 31, 2018.
The assigned rating derives strength from ABL AMC’s strong sponsor profile, adequate control functions, one of the highest equity in the industry, continuous investment in technology and balanced board composition. Rating also takes into account, company’s sound governance framework as reflected by professional management team, satisfactory board oversight along with adequate risk management and control framework. The rating incorporates improvement in the relative performance of funds under management; the same will remain a key rating driver going forward. ABL AMC’s funds on both equity and fixed income front remained one of the best performing funds in the industry during FY19. The rating incorporates increase in market share of the company; however, growth largely remains manifested in corporate portfolio with retail proportion in total AUMs remained stagnant. The rating draws comfort from the company’s efforts of further utilizing synergies with parent bank for growth in scale of operations and enhanced digitalization.

Product portfolio of ABL AMC is comprehensive including a diverse range of Conventional and Shariah Compliant products, however; to meet growth initiatives, management’s focus is directed towards strengthening retail investment proportion by expanding outreach through ABL Bank, enhancing in-house sales force and roll-out of digital initiatives. Rating remains dependent on continuation of sound profitability, fund performance and improvement in market share with higher focus on retail side.

For further information on this rating announcement, please contact Ms. Maham Qasim at 042-35723411-13 (Ext: 8005) or the undersigned at 021-35311861-70 (201) or email at info@vis.com.pk .



Javed Callea
Advisor

Applicable rating criterion: Asset Management Companies (June, 2019)
https://www.vis.com.pk/kc-meth.aspx

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Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (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.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.VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings.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 2019 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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