Karachi, December 31, 2015 (PPI-OT): JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned initial Management Quality Rating of Askari Investment Management Limited (AIML) at ‘AM3+’ (AM-Three Plus). Outlook on the assigned rating is ‘Stable’.
AIML is a wholly-owned subsidiary of Askari Bank Limited (AKBL) and under the umbrella of Fauji Foundation (better known as Fauji Group). Sponsor support has been witnessed via changes in the composition of the board to a well-rounded and experienced group. AKBL further achieves the same through investment in AIML managed collective investment schemes (CISs) through both its investment portfolio and provident fund.
AIML manages a product suite of 7 CISs ranging from conventional to Shari’ah based schemes. Though one fund does represent almost 50% of total assets under management (AUMs), the AMC has generated a market share of 1.85% at end-FY15 (FY14: 2.33%). Total AUMs fell to Rs. 8b by end-FY15 (FY14: Rs. 10b) on account of corporate redemptions due to tax reasons. The AMC has since taken steps to recover through increased corporate marketing and effective improvement in the sales force of the company. Net AUMs at end-Oct’15 increased by 21.25% amounting to Rs. 9.7b.
Performance track of the funds has showcased up and down movement. In general, all funds rank in the third quartile as compared to peers (in their category), expect for the money market fund which showed significant improvement and ranked in the top quartile. Targeting growth in retail AUMs will require improved performance on hybrid and equity based schemes where returns are generally higher.
Introduction of a new CEO and CIO has filled in senior management positions. The CEO provides stability and continuity to the organizational structure of the company through an empowered Management Committee (MANCOM) which has strengthened organizational structure and has allowed increased operational efficiency. The CIO, an experienced professional, has already improved cohesion in the investment making process and further established a Research department in the company.
For more information, contact:
Ms. Sobia Maqbool
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi