Press Release
JCR-VIS Upgrades Management Quality Rating of Magnus Investment Advisors Limited
Karachi, February 14, 2019: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has upgraded the Management Quality Rating (MQR) of Magnus Investment Advisors Limited (MIAL) to ‘AM2+ (IA)’ from ‘AM2 (IA). Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on October 24, 2017.
The assigned rating factors in MIAL’s strong internal control environment and its orientation towards transparency and conformity to regulatory requirements. The rating derives strength from the company’s established business position in investment advisory services, improvement witnessed in board composition and reporting structures, well-defined organizational structure, healthy growth in AUMs and superior long-term portfolio returns of the funds managed vis-à-vis established benchmarks. Maintaining consistency in returns over the long term is considered important from rating perspective.
Over the last five years (ended-June’2018), assets under management has grown at a CAGR of 17.96%. Increasing trend is on account of addition of new clients and increase in AUMs of existing clients contributing to higher AUMs. Going forward, growth in AUMs is expected to be facilitated by implementation of Employee Contributory Funds regulations 2018 (effective from June’2019) which has enhanced compliance and reporting requirements. Financial profile remains healthy with sizeable increase in management fees earned during FY18 and sound liquidity and capitalization indicators.
For further information on this rating announcement, please contact the undersigned (Ext: 201) at 35311861-70 or fax to 35311872-3.
Jamal Abbas Zaidi
Advisor
Applicable Rating Criteria: Management Quality Rating Investment Advisors
http://www.jcrvis.com.pk/Images/MQR-Mehtodology-2015.pdf