Press Release

JCR-VIS Reaffirms Management Quality Rating of UBL Fund Managers Limited
 

Karachi, December 27, 2018: JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) has reaffirmed the Management Quality Rating of UBL Fund Managers Limited (UBL Funds) at ‘AM-1’ (AM-One). The assigned rating of ‘AM-1’ (AM-One) signifies that the asset manager exhibits excellent management characteristics. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 29, 2017.

Market share of UBL Funds in total industry Assets under Management (AUMs) increased slightly during FY18. Islamic AUMs depicted decrease in FY18 and represented around two-thirds of AUMs while conventional AUMs depicted growth. The assigned ratings factor in fund performance of UBL Funds which has been maintained during period under review. While there has been induction of new investors, investor concentration within retail base remains on the higher side.

Overall governance framework draws support from professional management team, proactive board oversight, along with adequate risk management practices. However, in line with best practices, segregation of risk management and compliance functions is warranted to reinstate their independence. As at end-November’2018, UBL Funds had 13 conventional and 10 Islamic Funds under management. Product suite of the company caters to most investor needs with UBL Funds being a leader in new product development. Going forward, launch of active allocation and theme based plans along with capital protected funds is envisaged to support AUM growth in 2019.

Strength and experience of investment management team are consistent with the assets being managed, backed by adequate analytical resources and clear segregation of responsibilities. Changes in the investment process last year are reflected in consistent fund performance during 2018. Continuity of the same over a longer time horizon is considered important. As one of the key rating parameters, JCR-VIS will continue to monitor performance of assets under management across different asset classes over time; weakness in the same could trigger a rating review.


For further information on this rating announcement, please contact the undersigned (Ext: 201) or Mr. Jamal Abbas Zaidi (Ext: 207) at 35311861-70 or fax to 35311872.




Javed Callea
Advisor

Applicable Rating Criteria: Asset Management Companies Rating (March 2016)
http://www.jcrvis.com.pk/kc-meth.aspx

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Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited JCR-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.JCR-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.JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings.JCR-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 2018 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited