Press Release

JCR-VIS Upgrades Management Quality Rating of Magnus Investment Advisors Limited
 

Karachi, February 26, 2015: The Management Quality (MQ) Rating scale for Asset Management companies undertaking investment advisory services alone has been appended with the suffix IA to distinguish it from MQ Ratings for asset management companies outstanding by JCR-VIS Credit Rating Company Limited (JCR-VIS). JCR-VIS has harmonized the previously outstanding rating of Magnus Investment Advisors Limited (Magnus) from ‘AM3+’ (AM-Three Plus) to ‘AM3+(IA)’ (AM-Three Plus (IA)). Further, JCR-VIS has upgraded the MQ rating of Magnus from ‘AM3+(IA)’ (AM-Three Plus (IA)) to ‘AM2-(IA)’ (AM-Two Minus (IA)). Outlook on the rating is ‘Stable’. The previous rating action was announced on July 16, 2013.

The assigned rating incorporates well-formalized investment process, qualified senior management team and adequate control infrastructure at Magnus. The rating also reflects policy framework and compliance culture of the firm which exhibits strong disposition towards self-regulation, transparency and disclosure to clients. Performance of both fixed income and equity portfolios of Magnus have been competitive in relation to respective benchmarks.

Total Assets under Management (AUMs) of domestic clients has increased over the years on account of addition of new clients and higher AUMs of existing clients. Client base of the company features reputed multinationals that have been associated with Magnus for a number of years. While concentration in fee based revenues has declined on a timeline basis, the same continues to be on the higher side. In order to broaden customer base and to tap the gap in high net-worth and affluent individual’s segment, the management is expanding operations to offer wealth management services.

Board features experienced professionals with diversified background from the financial & industrial sectors. Addressing certain reporting line inconsistencies and enhancing functioning & composition of the Board & the Audit Committee will further enhance the governance framework at the institution. Senior management team comprises qualified professionals. In recent periods, stability has been observed at senior management level which bodes well for the organization.

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: Management Quality Rating Investment Advisors

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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 2015 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

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