PACRA Maintain Asset Manager Rating of BMA Asset Management Company Limited
|Rating Type||Asset Manager|
The rating emanates from the company’s adequate positioning in the industry, adequately structured investment process and relatively new management team. The rating incorporates the company’s limited fund slate in the categories of money market and aggressive fixed income. The Company managed decent growth in its AUMs in CY17 but the system share still remains below 1%. However, the group’s brand, and operating platform remain key advantages. The size and number of mandates observed a decline of 15% resulting in a limited position in the SMA segment. To gain momentum, the company plans to launch a private equity fund to elicit investment diversification. The management intends to implement a focused strategy for client retention.
The rating is dependent on a business strategy to enhance the company’s competitive positioning in the industry. Upholding strong governance structure, ensuring fairness and transparency and delivering competitive performance remains imperative.
BMA Asset Management Company (BMA AMC), incorporated in July 2006 as a public unlisted company, is licensed to carry out asset management and investment advisory services under the Non-Banking Finance Companies Regulations. The company is a majorly owned subsidiary of BMA Capital Management. The company has a limited fund slate (currently managing two funds) and the portfolio has decreased by ~15% in CY17. In terms of AUMs, it stood at ~PKR 7,728mln in Dec-17 (~PKR 9,059mln in Dec-16).
BMA AMC has a five member board including CEO. The other board member comprises three independent directors. Mr. Salim Khan appointed as a chairman of the board in October 2017 board election. He possess vast experience in Strategic Human Resource Consultancy and Organizational Development.