Press Release

VIS Assigns Positive Outlook to Management Quality Rating of HBL Asset Management Limited
 

Karachi, December 31, 2021: VIS Credit Rating Co. Ltd. (VIS) has maintained the Management Quality Rating (MQR) of HBL Asset Management Limited (HBL AMC) at ‘AM2++’ (AM-Two Plus Plus). Outlook on the assigned rating has been revised from ‘Stable’ to ‘Positive’. Previous rating action was announced on December 31, 2020.

Revision in rating outlook incorporates AMC’s sustained market positioning with strong growth in AUMs during the review period largely driven by money market funds with major contribution from corporate clients. Ratings are also supported by planned equity injection over the rating horizon. Ratings continue to factor in comprehensive product portfolio and sound sales and distribution network. Furthermore, the adequate governance & control framework, stable & professional management team and well defined investment process continue to provide comfort; although fund performance of income and equity funds has room for improvement. Market share over the longer horizon has depicted a declining trend; however, the same registered a healthy uptick in the ongoing year and stood at ~8.5% (share in Islamic segment at ~4.0%) as at end-Oct’21.

Aggressive sales growth strategy is being pursued with primary focus on growing retail and HNWI segments. Convergence with HBL for enhancement of customer base, strengthening of sales force, expansion of geographic footprint through leveraging HBL’s entire branch network, establishment of smart saving centers, digital transformation and other marketing initiatives are the key features of the growth plan. Positive rating triggers, going forward are underpinned with sponsors support to provide operational self-sufficiency, successful execution of growth strategy and achievement of projected AUMs along with augmenting retail penetration, reducing concentration in investor base, increasing market share and improvement in overall funds’ performance.

For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 204) or the undersigned (Ext. 306) at 021-35311861-70 or email at info@vis.com.pk



Faryal Ahmad Faheem
Deputy CEO

Applicable Rating Criteria: Asset Management Companies (June 2019)
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/AMC-Methodology-201906.pdf

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Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2021 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited