KARACHI: JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) has upgraded the Management Quality (MQ) Rating of UBL Fund Managers Limited from ‘AM2’ to ‘AM2+’ with Outlook on the assigned rating as ‘Stable’. This rating is currently the highest management quality rating assigned to any Asset Management Company in Pakistan.
The rating upgrade takes into account various measures taken by the company to strengthen the institutional infrastructure and institute a culture of sound governance and risk management that emanates from the Board of Directors and has cascaded down the organizational hierarchy. The rating upgrade also takes into account the relative performance of Islamic stock fund has remained consistently strong while there is also an uptick in the performance of conventional stock fund. Performance of asset allocation funds and retirement savings funds stacks favorably against peers.
In the income and money market categories, relative return performance features variation, though in most cases, the return differential is not sizeable.
Mir Muhammad Ali, CEO of UBL Fund Managers expressed his views stating: “we are proud to have acquired the high quality rating of AM2+ which came right after the prestigious MAP Top Corporate Excellence Award”. He added, “It has been a great year for UBL Funds and we are delighted that our clients have enjoyed strong fund performance in equity, retirement and asset allocation funds.”
The Management Quality Rating provides an opinion on the overall quality of the management company as a fund manager, including organizational structure, quality of human resources, degree of oversight and accountability, particularly as regards risk management capabilities.
The criterion for management quality rating entails greater reliance on qualitative factors. Ability to manage funds is assessed with special emphasis on the extent to which management has been able to put in place sound governance practices and systems to facilitate manager’s ability to maximize risk-return proposition for unit-holders while keeping in view the stated investment objectives. JCR-VIS also considers financial strength of a management company in terms of its continuing ability to manage these funds and sustainability of its operations.
JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) operates as a ‘Full Service’ rating agency providing independent rating services in Pakistan and is approved by Securities & Exchange Commission of Pakistan and State Bank of Pakistan.