The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (21-December-2006)
    PACRA Assigns the Asset Manager Rating to
KASB Funds Limited (KFL)
 

 
Analyst
Maimoon Rasheed
(+92-42-586 9504)
maimoon@pacra.com

 

 

 













 

 

 

 

 

 

 

Disclaimer
This press release is transmitted to you for this sole purpose of dissemination through your newspaper/magazine/agency. The press release may be used by you in full or in part without changing the meaning or context thereof but with due credit to PACRA. However, PACRA has the sole right of distribution of its press releases for consideration or otherwise through any media.

  

The Pakistan Credit Rating Agency (PACRA) has assigned an asset manager rating of “AM3+” to KASB Funds Limited (KFL). The rating reflects the company’s strong capacity to manage the risks inherent in asset management and the asset manager meets high investment management industry standards and benchmarks.

The rating reflects KFL’s capacity to establish a strong asset management platform in an increasingly competitive operating environment. This capacity emanates from (1) its association with KASB group, having extensive capital market exposure (2) technical assistance and equity investment by an asset manager of international standing – Merrill Lynch Investment Managers Group Limited – and (3) an experienced and well-qualified management team. This is further supported by a strong focus on corporate governance, a structured investment process, and effective supporting systems and risk management policies. While the management has developed a well-conceived business strategy to overcome inherent constraints – limited assets under management – primarily an outcome of short track record, the extent of success in achieving these plans and the related timeline remains to be seen.

About the company: KFL, sponsored by KASB group, commenced operations in January 2005. Founded by (late) Mr. Khadim Ali Shah Bukhari in early fifties, KASB group has gained extensive experience in the domestic financial market. Stock market operations and advisory services remained the mainstay of the group till its acquisition of KASB Bank Limited (KBL) in 2002. Now, within financial services, the group’s interests include commercial banking, brokerage (KASB Securities Limited – KSL) and asset management business. At the same time, the group has increasing interest in other sectors. The Chief Executive of KFL has over 13 years of experience in the financial markets of Pakistan, and has been associated with the group since the beginning of her career.

Currently KFL has one fund under management – KASB Liquid Fund – launched in May 2006. This is an open-end money market fund, having net assets of over PKR 1.3bln at end-Oct 2006.
 
The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity.

PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings.

PACRA's opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.

 

    
d?.eims d?.oiss