PACRA Maintains Asset Manager Rating of Habib Asset Management Limited
|Rating Type||Asset Manager|
The rating reflects the company's experienced management, adequately structured investment decision making process and limited fund slate. The rating takes into account the company's association with a strong commercial bank, Bank Al-Habib Limited, though translation of this brand name into AUMs remains limited. The company’s AUMs reached ~PKR 4bln at end Nov-18 as compared to ~PKR 3bln in Dec-17, but still remained low when compared to its peers. Meanwhile, rising administrative and operating expenses mainly (sales and distributors commissions) due to its business expansion have had adverse impact on its profitability. The management is cognizant of this and intends to strengthen its financial performance by increasing its fund slate and fund management revenue through the fresh influx of AUMs with a major focus on both retail and institutional clientele. The company is in the process of expanding the human resource and strengthening its research and risk management functions.
The rating is dependent on the company’s ability to enhance its market position, gain in terms of assets under management, diversification in fund slate and maintain strong performance of its funds. Meanwhile, upholding high governance standards and strengthening of risk management is crucial for the rating.
HAML, incorporated in September 2005 as an unlisted public limited company, is licensed to carry out asset management and investment advisory services under the Non-Banking Finance Companies Regulations. The company is a part of Habib group, the oldest and a distinguished name in Pakistan’s banking circle, with interest in insurance, sugar, textile, auto, food and trade sectors. Habib family and associates, a distinguished name in Pakistan, owns around 70% of shareholding in the company, while Bank AL Habib being the single largest shareholder holds 30% stake in the company.
HAML’s BoD consists of five members, including the CEO. The CEO, Mr. Imran Azim, is an MBA and has profound experience in the mutual fund industry. The company is currently managing six open-end funds with assets under management of ~PKR 4bln at the end of Nov-18.