Press Release

JCR-VIS assigns initial Management Quality Rating of Askari Investment Management Limited
 

Karachi, December 31, 2015: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned initial Management Quality Rating of Askari Investment Management Limited (AIML) at ‘AM3+’ (AM-Three Plus). Outlook on the assigned rating is ‘Stable’.

AIML is a wholly-owned subsidiary of Askari Bank Limited (AKBL) and under the umbrella of Fauji Foundation (better known as Fauji Group). Sponsor support has been witnessed via changes in the composition of the board to a well-rounded and experienced group. AKBL further achieves the same through investment in AIML managed collective investment schemes (CISs) through both its investment portfolio and provident fund.

AIML manages a product suite of 7 CISs ranging from conventional to Shari'ah based schemes. Though one fund does represent almost 50% of total assets under management (AUMs), the AMC has generated a market share of 1.85% at end-FY15 (FY14: 2.33%). Total AUMs fell to Rs. 8b by end-FY15 (FY14: Rs. 10b) on account of corporate redemptions due to tax reasons. The AMC has since taken steps to recover through increased corporate marketing and effective improvement in the sales force of the company. Net AUMs at end-Oct’15 increased by 21.25% amounting to Rs. 9.7b.

Performance track of the funds has showcased up and down movement. In general, all funds rank in the third quartile as compared to peers (in their category), expect for the money market fund which showed significant improvement and ranked in the top quartile. Targeting growth in retail AUMs will require improved performance on hybrid and equity based schemes where returns are generally higher.

Introduction of a new CEO and CIO has filled in senior management positions. The CEO provides stability and continuity to the organizational structure of the company through an empowered Management Committee (MANCOM) which has strengthened organizational structure and has allowed increased operational efficiency. The CIO, an experienced professional, has already improved cohesion in the investment making process and further established a Research department in the company.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Mr. Jazib Ahmed, CFA (Ext: 510) at 35311861-70 or fax to 35311872-3.


Jamal Abbas Zaidi
Advisor

Applicable Rating Criteria: Mutual Fund Rating (December 2006)
http://jcrvis.com.pk/Images/MFund-20061201-2.pdf

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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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