Karachi, December 31, 2021 (PPI-OT):VIS Credit Rating Co. Ltd. (VIS) has maintained the Management Quality Rating (MQR) of HBL Asset Management Limited (HBL AMC) at ‘AM2++’ (AM-Two Plus Plus). Outlook on the assigned rating has been revised from ‘Stable’ to ‘Positive’. Previous rating action was announced on December 31, 2020.

Revision in rating outlook incorporates AMC’s sustained market positioning with strong growth in AUMs during the review period largely driven by money market funds with major contribution from corporate clients. Ratings are also supported by planned equity injection over the rating horizon. Ratings continue to factor in comprehensive product portfolio and sound sales and distribution network. Furthermore, the adequate governance and control framework, stable and professional management team and well-defined investment process continue to provide comfort; although fund performance of income and equity funds has room for improvement. Market share over the longer horizon has depicted a declining trend; however, the same registered a healthy uptick in the ongoing year and stood at ~8.5% (share in Islamic segment at ~4.0%) as at end-Oct’21.

Aggressive sales growth strategy is being pursued with primary focus on growing retail and HNWI segments. Convergence with HBL for enhancement of customer base, strengthening of sales force, expansion of geographic footprint through leveraging HBL’s entire branch network, establishment of smart saving centers, digital transformation and other marketing initiatives are the key features of the growth plan. Positive rating triggers, going forward are underpinned with sponsors support to provide operational self-sufficiency, successful execution of growth strategy and achievement of projected AUMs along with augmenting retail penetration, reducing concentration in investor base, increasing market share and improvement in overall funds’ performance.

For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: bilal@jcrvis.com.pk
Website: https://www.vis.com.pk/