Muhammad Zain Ayaz
PACRA Maintains Asset Manager Rating of AL Habib Asset Management Limited
|Rating Type||Asset Manager|
AL Habib Asset Management Limited’s (or the "Company") stable market share, experience management team, structured investment decision process and adequate risk management framework. Strong ownership and good governance profile also provide support to the rating. The Company has gained significant market share through aggressive growth in AUMs, which stand at ~PKR 34.2bln in July (Dec 20: ~PKR 25.5bln). The rating reflects the Company's association with Bank AL Habib, its growing market share, strong governance framework and fortified equity base. The Company's market share is improving, and stood at ~3.1% (Dec 20: ~2.7%) but AUM concentration remains high with tilt towards money market and Islamic income funds. The Company is benefiting from access to large branch network of Bank AL Habib and its strong brand name. The overall fund performance remained above the benchmark except for the equity and asset allocation categories, which underperformed and has limited size. The Company reported net profit of ~PKR 57mln at end 1HCY21 (1HCY20 : ~PKR 18.8mln). The Company's equity stood at ~PKR 718mln at end Jun'21, comfortably meeting the minimum regulatory capital requirement of PKR capital 230mln. The core-income has shown an increase of ~16.3% and stood at ~PKR 57mln at end 1HCY21 (1HCY20: ~PKR 49mln). The increase in-core income is due to influx from money market and income categories.
The rating is dependent on the Company’s ability to capitalize on synergies emanating from association with Bank AL Habib through increased market share. Diversification of the fund slate and maintaining strong fund performance will be critical. Strengthening systems and adhering to robust investment process is important.
AL Habib Asset Management Limited incorporated in September 2005 as an unlisted public company, is one of the growing Asset Management and Investment Advisory Company in Pakistan. The company is licensed by the Securities and Exchange Commission of Pakistan (SECP) to carry out these services under the Non-Banking Finance Companies Regulations. The Company is a wholly owned subsidiary of Bank AL Habib Limited.
The Board of Directors comprises six members. The CEO, Mr. Kashif Rafi, has vast experience expanding over 20 years in the field of Investments and Fund Management. The Company’s diverse product slate includes 4 conventional funds and 2 shariah compliant funds.