Press Release
JCR-VIS assigns Positive outlook to ABL Asset Management Company Limited
Karachi, January 10, 2013: JCR-VIS Credit Rating Company Limited has maintained the Management Quality Rating of ABL Asset Management Company Limited (ABL AMC) at ‘AM 2-’ (AM Two Minus). Outlook on the assigned rating has been revised from ‘Stable’ to ‘Positive’.
ABL AMC launched two new funds during the year to increase their total product suite to six open end funds under management. The newly launched funds include a fixed income fund and a capital protected fund to add to the existing portfolio of a money market fund, an income fund, an Islamic income fund and a stock fund. On a long term basis, performance of all funds (excluding the capital protected fund which has limited history) remained consistently superior to the peer group median. Year-to-date performance of four funds (ABL Stock Fund, ABL Income Fund, ABL Govt. Securities Fund and ABL Islamic Income Fund) featured in the top quartile in their respective categories.
Management team has depicted stability in the outgoing year, with only two senior positions witnessing turnover, which were replaced with suitably qualified personnel. A separate risk management function was set up during FY12; there is nevertheless need for greater depth in this area with focus on policy implementation and monitoring. Additional resources are being considered by the company to further strengthen this function.
Total Assets under Management (AUMs) exhibited significant growth during the year with market share increasing to 16% (FY11: 7%) by end FY12; of this, major proportion came as contribution of related party investments. Market share, net of related party AUMs stood at 7.5% at the end of the same period. Significant support is derived from the strong franchise and widespread branch network of the parent bank; the company has also developed and implemented a comprehensive business development plan which utilizes the parent bank’s branch network to tap a wide retail customer base. Going forward, distinction in product and service offering may better position the AMC to attract retail investors in addition to consistently superior performance of funds under management.
The company is also the first in the industry to qualify for ISO 27001 certification pertaining to Information Security and IT systems. The objective of this certification is to achieve international standards in terms of Information Security Management Systems and improve its services as per international benchmarks.
For further information on this rating announcement, please contact Mr. Javed Callea (Ext. 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at 021-35311861-70 or fax to 021-35311873.
Jamal Abbas Zaidi
Deputy CEO