Press Release

VIS Assigns Positive Outlook to Management Quality Rating of ABL Asset Management Company Limited

Karachi, December 31, 2020: VIS Credit Rating Company Limited (VIS) has maintained the Management Quality Rating (MQR) of ABL Asset Management Company (ABL AMC) at ‘AM2++’ (AM-Two-Double Plus). The medium to long-term rating of ‘AM2++’ exhibits very good management characteristics. Outlook on the assigned rating has been revised from ‘Stable’ to ‘Positive’. The previous rating action was announced on December 31, 2019.
The assigned rating derives strength from continuity in strong sponsor profile, adequate control functions, and sound governance framework as reflected by professional management team, satisfactory board oversight along with a comprehensive risk management and control framework. The rating incorporates slight increase in market share of the company; however, growth largely remains manifested in corporate portfolio. The rating draws comfort from the company’s focus towards marketing collaboration with parent bank, expansion of geographic footprint in the South, strengthening and strategic allocation of sales force, enhancement of customer base through digital initiatives, and establishment of Islamic Dedicated Saving Centers.

Product portfolio of ABL AMC is comprehensive including a diverse range of Conventional and Shariah Compliant products. However, portfolio concentration remains in few funds. Going forward, further growth in AUMs may be supported by equity funds with management’s focus towards building the same in line with its bullish view on the stock market. In order to increase exposure in equity based funds, an in-house campaign was launched to encourage big corporate clients towards equity-based products. Relative performance of funds shall remain a key rating driver going forward.

Positive rating triggers, going forward are underpinned with consistency in current performance with further improvements in areas such as total market share, retail proportion in total AUMs, relative performance of funds and reduction in client concentration. Rating remains dependent on continuation of sound profitability and maintenance of sound corporate governance framework.

For further information on this rating announcement, please contact Ms. Asfia Aziz or the undersigned at 021-35311861-70 (301) or email at info@vis.com.pk.



Faheem Ahmad
President & CEO

Applicable rating criterion: Asset Management Companies (June, 2019)
https://www.vis.com.pk/kc-meth.aspx

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