Karachi, December 27, 2018 (PPI-OT): JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) has reaffirmed the Management Quality Rating of UBL Fund Managers Limited (UBL Funds) at ‘AM-1’ (AM-One). The assigned rating of ‘AM-1’ (AM-One) signifies that the asset manager exhibits excellent management characteristics. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 29, 2017.
Market share of UBL Funds in total industry Assets under Management (AUMs) increased slightly during FY18. Islamic AUMs depicted decrease in FY18 and represented around two-thirds of AUMs while conventional AUMs depicted growth. The assigned ratings factor in fund performance of UBL Funds which has been maintained during period under review. While there has been induction of new investors, investor concentration within retail base remains on the higher side.
Overall governance framework draws support from professional management team, proactive board oversight, along with adequate risk management practices. However, in line with best practices, segregation of risk management and compliance functions is warranted to reinstate their independence. As at end-November’2018, UBL Funds had 13 conventional and 10 Islamic Funds under management. Product suite of the company caters to most investor needs with UBL Funds being a leader in new product development. Going forward, launch of active allocation and theme based plans along with capital protected funds is envisaged to support AUM growth in 2019.
Strength and experience of investment management team are consistent with the assets being managed, backed by adequate analytical resources and clear segregation of responsibilities. Changes in the investment process last year are reflected in consistent fund performance during 2018. Continuity of the same over a longer time horizon is considered important. As one of the key rating parameters, JCR-VIS will continue to monitor performance of assets under management across different asset classes over time; weakness in the same could trigger a rating review.
For more information, contact:
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JCR-VIS Credit Rating Company Limited
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Email: sobia@jcrvis.com.pk