logo
The Pakistan Credit Rating Agency Limited
Press Release

Date
30-Jun-18

Analyst
Shahzaib Khalid
shahzaib.khalid@pacra.com
+92-42-35869504
www.pacra.com

Applicable Criteria

Related Research

Disclaimer
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintain Asset Manager Rating of BMA Asset Management Company Limited

Rating Type Asset Manager
Current
(30-Jun-18)
Previous
(22-Dec-17)
Action Maintain Maintain
AM Rating AM3 AM3
Outlook Stable Stable
Rating Watch - -

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.

About the Entity
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.

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 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.