Press Release

VIS Reaffirms Management Quality Rating of Magnus Investments Limited

Karachi, June 14, 2024: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Management Quality Rating (MQR) of Magnus Investments Limited (MIL) at ‘AM2++ (IA)’ (AM-Two Plus Plus (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 19, 2023.

The rating assigned to MIL takes into account various factors, including its significant experience within the specialized investment advisory sector, reputable brand presence, and broad client portfolio encompassing both local and multinational institutions. Furthermore, the assessment incorporates MIL's well-established organizational framework, experienced and continuity of senior leadership, and effective internal controls and governance standards. The Company's commitment to client reporting and consistent feedback mechanisms underscores its strong client relationship management practices.

The Company's net assets under management (AUMs) experienced a slight decline as of June 2023, primarily due to the final settlements paid by the clients of Magnus to their employees, which are mostly retirement funds. However, the same has registered notable increase during H1’FY24 mainly with the addition of new clients. An analysis of sample client portfolios revealed that they consistently outperformed benchmarks over a 10-year period, demonstrating sustained performance in the long run. Over time, the Company has observed an improvement in its earnings profile, driven by growing Management Fee, resulting in a strengthened equity base. With a low-debt capital structure and sufficient liquidity, the Company maintains a low financial risk profile. Despite an increase in its client base, there remains a significant concentration among clients, emphasizing the importance of expanding the client base and the Company has already executed a strategy to address this concentration.

For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.


Applicable Rating Criteria: Management Quality Rating Investment Advisors
https://docs.vis.com.pk/docs/Management-Quality-IA-with-ESG-V2.pdf

VIS Issue/ Issuer Rating Scale:
https://docs.vis.com.pk/docs/VISRatingScales.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 June 14, 2024 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.