Press Release

VIS Reaffirms Management Quality Rating of Magnus Investment Advisors Limited

Karachi, February 11, 2020: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Management Quality Rating (MQR) of Magnus Investment Advisors Limited (MIAL) at ‘AM2+ (IA)’. 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 February 14, 2019.

MIAL has been operating for over a decade as a specialized investment advisor with experience in managing investments for institutional clients and High Net Worth (HNW) individuals. Clientele of the company mainly includes various domestic and multinational institutions.

During the latest period reviewed, i.e. CY2019, MIAL registered growth in AUMs of more than 10%, having added 5 new mandates. Fund performance has been affected by adverse equity market performance & rising interest rate environment. However, overall long term fund performance, of random sample of institutional clients reviewed, was indicative of an out performance vis-à-vis benchmark agreed with client. Review of the client feedback data was also indicative of strong client satisfaction.

The rating assigned to MIAL continues to factor in a strong control environment, and a well-defined investment decision making framework. Policies and procedures are documented and adequately communicated to clients. In accordance with best practices, the Chairman of the Board is an independent director. However key person risk still exists, as CEO also holds the position of CIO.

Overall, financial performance of the entity has suffered on account of adverse equity market performance impacting the company’s proprietary portfolio performance. Taking into account the losses incurred on proprietary portfolio, the company did incur slight equity erosion. Nevertheless, despite of the same, capitalization remains adequate.

For further information on this rating announcement, please contact the undersigned (Ext: 201) at 35311861-70 or fax to 35311872-3.

Javed Callea

Applicable Rating Criteria: Management Quality Rating Investment Advisors

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