Karachi, April 19, 2023 (PPI-OT):VIS Credit Rating Company Ltd. (VIS) has upgraded the Management Quality Rating (MQR) of Magnus Investments Limited (MIL), formerly Magnus Investment Advisors Limited, from ‘AM2+ (IA)’ (AM-Two Plus (IA)) to ‘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 13, 2022.
The rating assigned to MIL takes into account various factors such as its extensive experience in the specialized investment advisory business, strong brand reputation, and diverse client base that includes both local and multinational institutions. Additionally, the rating considers the well-defined organizational structure of the Company, its seasoned senior management team, and the sound internal control environment and governance levels. MIL's comprehensive reporting to clients and regular feedback reviews indicate a robust client relationship management.
The net assets under management (AUMs) of the Company have grown by 4.8% as of Jun’22. The growth in net assets is attributed to the addition of new clients over the years and an increase in AUMs of existing mandates. The funds' liquidity management is adequate, and a sample portfolio review of clients showed out-performance compared to benchmarks. The consistency in the same is considered important from a ratings perspective.
The Company's earning profile has improved over time in line with the growth of AUMs, leading to an improved equity base. The financial risk profile of the Company is low due to its unleveraged capital structure and sound liquidity profile. However, the Company's client-wise concentration is higher than desired, and improving diversity and granularity of the client base is considered important from a rating perspective.
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/