Press Release

JCR-VIS Reaffirms Management Quality Rating of HBL Asset Management Limited at AM2-
 

Karachi, January 14, 2016: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Management Quality Rating of HBL Asset Management Limited (HBL AMC) at ‘AM2-’ (AM-Two Minus). Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on March 13, 2015.

The rating assigned to HBL AMC take into account presence of a structured investment process and sound control infrastructure. The AMC benefits from parental support and commitment from its single shareholder, HBL, the largest commercial bank in the country. With the recent launch of HBL Islamic Asset Allocation fund, HBL AMC is managing a diversified portfolio of 10 funds. The AMC aims to better align product suit with investors evolving needs and the competitive environment. Unitholder continues to feature sizeable concentration albeit improving on a year-on-year basis.

HBL AMC’s senior management team is experienced. Strengthening of the research and investment management team has been viewed positively. Organizational structure of the sales function was revamped with separate heads for conventional and Islamic sales. There is nevertheless room to strengthen the organizational structure of the AMC. In the sales strategy currently being pursued by the company, greater focus towards achieving retail penetration has been observed with branches of HBL also being used as a channel to generate sales. The IT platform is adequate and supports the growing operations of the company.

Overall investment strategy of the AMC is risk averse. Stock funds are predominately invested in blue chip companies which have underperformed in the recent period. Resultantly, performance of stock funds remained depressed. Returns of the income and money market funds remained largely competitive.

For further information on this rating announcement, please contact the undersigned (Ext: 517) or Mr. Javed Callea (Ext: 501) at 021-35311861-70 (10 lines) or fax to 021-35311873.



Jamal Abbas Zaidi
Advisor

Applicable Rating Criteria: Mutual Funds Rating (December 2006)
http://www.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 2016 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