Press Release

VIS Reaffirms Management Quality Rating of Magnus Investments Limited (Formerly Magnus Investment Advisors Limited)

Karachi, April 13, 2022: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Management Quality Rating (MQR) of Magnus Investments Limited (MIL), formerly Magnus Investment Advisors Limited, at ‘AM2+ (IA)’. Medium to long-term rating of ‘AM2+’ exhibits very good management characteristics. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on April 01, 2021.

Assigned rating continues to factor in MIL’s extensive operating track record in specialized investment advisory business and strong brand reputation and client base comprising various local and multinational institutions. Rating further incorporates a well-defined organizational structure, seasoned senior management team, sound internal control environment and governance levels. Quality of reporting to clients is considered comprehensive while quarterly review of feedback of services is indicative of sound client relationship management. Room for improvement exists in terms of succession risk as major shareholding is held by a single individual.

Net assets under management have registered a decent growth in the ongoing year. The timeline growth in net assets is attributable to continued addition of new clients over the years along with increasing AUMs of existing mandates. Liquidity management of the funds is adequate while review of a sample of clients’ fund portfolio was indicative of out-performance vis-à-vis benchmarks. The consistency in the same is considered important from a ratings perspective. Earning profile has depicted improvement on a timeline basis in line with AUMs growth. The same has translated into improved equity base. Financial risk profile is considered low given unleveraged capital structure of the company and sound liquidity profile. However, client-wise concentration remains on the higher side.

For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 203) or the undersigned (Ext: 207) at (021) 35311861-70 or email at info@vis.com.pk .



Sara Ahmed
Director

Applicable Rating Criteria: Management Quality Rating Investment Advisors
https://docs.vis.com.pk/docs/MQR-Mehtodology-201808.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (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. 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. 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 April 13, 2022 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.