LAHORE, Jan 4: The Pakistan Credit Rating Agency (Pacra) has assigned an asset manager rating of “AM4” to Crosby Asset Management (Pakistan) Limited (CAML), a wholly-owned subsidiary of Crosby Asset Management International Limited incorporated in the British Virgin Island.
A Pacra press announcement on Wednesday said the rating reflected the company’s adequate capacity to manage the risks inherent in asset management and the asset manager meets investment management industry standards and benchmarks.
The company’s asset management capacity, it said, was an outcome of reasonable management experience and business strategy, relevant software tools for portfolio management, adequate risk management policies and independence from reference shareholder in decision-making process.
However, it said, given its short operational history and relatively modest size in terms of professional manpower and infrastructure, the company had not been able to develop systems and processes comparable to some peers, which have a longer operational history and considerably larger pool of assets under management.
Despite these constraints, Pacra said, the company had been able to discharge its primary responsibility to investors because of the relatively modest size of assets under management. But, it said, given the existing organizational infrastructure, the capacity of the company could come under considerable strain with any material increase in the size of funds under management.
NLCL: Pacra also said it had maintained the long-term rating at “BBB” (triple B) and the short-term rating at “A3” (A three) of Network Leasing Corporation Limited.
The ratings, according to Pacra, denoted a low expectation of credit risk and an adequate capacity for timely payment of financial commitments.
The ratings reflect NLCL’s continued strategy of steady growth while keeping control over credit risk as reflected in its adequate asset quality. The company focus on micro leasing renders high cost structure and hence somewhat constrained profitability.
“This is due largely to socially motivated strategy of the sponsors to use leasing as a vehicle to contribute towards poverty alleviation. The core focus, therefore, remains on micro leasing for employment generation and enhancement of family incomes.
AHIML: The credit rating company JCR-VIS has reaffirmed the management quality rating of Arif Habib Investment Management Limited (AHIML) and harmonized it to ‘AM2’ on revised management quality rating scale.
The assets under the management of AHIML have continued to exhibit growth, with greater level of penetration achieved in the retail segment in case of open-end funds.
JCR-VIS has also assessed Pakistan Stock Market Fund’s (PSM) performance ranking for the period ending June 30, 2005 at ‘MFR 5-Star’, which denotes ‘very good performance viz-a-viz other open-end stock funds. The star rankings are assessed for six months.