Pakistan Credit Rating Agency Limited revises asset manager rating of BMA Asset Management Company Limited
Lahore, March 31, 2016 (PPI-OT):The Pakistan Credit Rating Agency (PACRA) has revised the asset manager rating of BMA Asset Management Limited (BMA AMC) to “AM3-” (AM Three Minus) [Previous Rating: AM3]. The rating reflects that the company meets good investment management standards and benchmarks.
The company enjoyed a strong position in its specific niche of separately managed accounts. The longevity of client relationships benefiting from the sponsors acumen along with the structured approach towards SMA mandates and sound investor services platform strengthened its position among its peers in this specific niche. Since the exit of the founding CEO in 2013, the company is struggling to maintain its position.
The size and number of mandates have observed a consistent decline resulting in a limited position in the SMA segment. The company also observed a massive decline in the AUMs base of conventional mutual funds and an offshore fund. The rating revision takes into account these weakenings in the company profile. Recently, the board has finalized the appointment of a new CEO, the regulatory approval is in process. The brand of the group, its historical relationships and operating platform would be supportive in developing a business plan.
The rating is dependent on the successful formulation of a focused business strategy resulting in building a company’s competitive position in the industry. Upholding strong governance environment, ensuring transparency and, fairness and delivering competitive performance in both the segments funds and SMAs remain important.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425