Press Release

JCR-VIS Reaffirms Management Quality Rating of ABL Asset Management Company Limited

Karachi, December 31, 2014: 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) with a ‘Stable’ Outlook. The previous rating action was announced on June 21, 2013.

ABL AMC is a wholly owned subsidiary of Allied Bank Limited (ABL). The management team of ABL AMC has depicted stability; personnel at the senior management level possess the necessary skill set to deliver on the company’s goals. Risk and compliance functions at ABL AMC are merged with a dedicated resource for each area. The team may need to be built as the company forges ahead with its growth plans. Recent developments on the operations side include outsourcing of some back office operations to a third party vendor.

After launching two principal protected funds; the company has also launched pension funds in 2014. There is also growth in the number of retirement mandates being managed by the company, with specific growth targets assigned for the same as well. In relation to peers, the performance of income and money market funds remain competitive; funds holding long term government paper have benefited from the movement in market rates. Over a five years period, the conventional stock fund is ranked MFR 4-Star depicting strong performance. The return of recently launched Islamic stock fund does not compare favorably to peers. As the portfolio of assets under management continues to increase, the management’s ability to deliver consistent results across product lines will continue to be tracked by JCR-VIS. The organization uses the Global Investment Performance Standards (GIPS®) for disclosure of its performance results; which is considered positive in view of increasing number of separately managed accounts.

In 2014, market share of the company increased to 6.8%. A multi-pronged distribution strategy utilizing in-house sales team, parent’s branches and third party distributors, is aimed at enhancing the company’s retail penetration as the same is lower in relation to peers. Additional resources are being hired by ABL AMC to reach out to its target market. In addition to the development of in-house sales team, progress has also been made in setting up dedicated sales offices, that are to be housed in the parent bank’s branches. JCR-VIS will continue to monitor the results of these initiatives.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at 35311861-70 or fax to 35311872-3.

Jamal Abbas Zaidi
Deputy CEO

Applicable Rating Criteria: Mutual Fund Rating (December 2006)

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 2014 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