The Pakistan Credit Rating Agency Limited
30-Jun-18
Analyst
Shahzaib Khalid
shahzaib.khalid@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Asset Manager Rating of Habib Asset Management 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 encapsulates the company's experienced management, adequately structured investment decision making process and reasonable fund slate. The rating also incorporates company's association with a strong commercial bank, Bank AL-Habib limited. The company is in the process of expanding the human source and strengthening its research function. Consistent improvement in the operating platform and channelization of group synergies would bode well for the company. The desired benefits towards enhancing the AUM base and strengthening the brand value remains limited. The management is eyeing expansion in the fund slate and intends to materialise its strategic plans by enhancing its position in industry coupled with major focus on retail penetration.
The rating is dependent on the successful formulation of a focused business strategy resulting in building a competitive position in the industry. Upholding strong governance practices, sound control environment and delivering competitive performance in both the funds and SMAs remains imperative.
About
the Entity
Habib Asset Management Limited, 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%.
Company’s Board of Directors consist of five members, including the CEO and the Chairman is a senior distinguished entrepreneur. Mr. Imran Azim, the CEO, 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 4 billion at end March-18.