Karachi, December 31, 2021 (PPI-OT):VIS Credit Rating Company Limited (VIS) has reaffirmed 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 is ‘Positive’. The previous rating action was announced on December 31, 2020.
The assigned rating derives strength from continuity in strong sponsor profile, sound governance framework supported by professional management team, satisfactory board oversight, and implementation of comprehensive risk management and control framework. The rating takes note of the slight increase in market share over the review period; albeit largely from corporate portfolio. The rating also factors in planned and underway enhanced collaboration with the parent bank, revamped structure to support geographic expansion in major cities, strengthening and strategic allocation of sales force including hiring of Head of Islamic Retail, digitalization initiatives, and dedicated Islamic centers. VIS will continue to monitor the materialization of recent initiatives taken to grow retail proportion in total AUMs.
Product portfolio of ABL AMC is comprehensive including a diverse range of Conventional and Shariah Compliant products; the company plans to launch new funds in the coming year in order to grow market share under the revamped structure. The concentration of AUMs has improved gradually over the review period; however, over half of the portfolio is still concentrated in two funds. A dedicated department has been established, targeting retired individuals in order to encourage investment in income and equity-based funds. The company to increase the equity component in the AUM has also launched a campaign to encourage retail and corporate clients towards equity-based products. Moreover, the AMC has also signed equity-based SMAs in both retail and corporate segments. Going forward, relative performance of funds shall remain a key rating driver.
Going forward, positive rating triggers include further improvements in areas such as total market share, retail proportion in total AUMs, relative performance of funds, continued granularity in portfolio concentration as well as reduction in client concentration. Rating remains dependent on continuation of sound profitability and maintenance of sound corporate governance framework.
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/