JCR-VIS maintains Management Quality Rating of National Asset Management Company Limited

Karachi, December 04, 2012 (PPI-OT): JCR-VIS Credit Rating Company Limited (JCR-VIS) has maintained the Management Quality rating of National Asset Management Company Limited (NAMCO) at ‘AM3-’ (AM Three Minus).

The AMC has two funds under management, Namco Income Fund (NIF) and Namco Balanced Fund (NBF). Performance of NIF witnessed significant improvement in FY12 vis-à-vis FY11 on account of reversal in provisioning and compared favorably to peers and benchmark.

However, in the on-going year, relative ranking of the fund in the peer group has weakened. Return of NBF has remained subdued vis-à-vis the benchmark; relative ranking in the peer group has been maintained. While there are plans to grow net assets of NIF, the fund size currently stands below Rs. 100m.

Net equity of the AMC is below minimum requirement. Given the limited financial resources available with the company, envisaged business strategy and organizational strengthening has not materialized. Revenues may come under stress in the on-going year, given the decision to be taken as regards the closed-end fund under management. Development on this front will be monitored by JCR-VIS. Outlook on the rating has been revised from ‘Positive’ to ‘Negative’.

For more information, contact:
Mr. Javed Callea
Advisor
JCR-VIS Credit Rating Company Limited
Tel: +9221 35311861 (10 lines) (Ext: 501)
Fax: +9221 35311872-3
E mail: javed.callea@jcrvis.com.pk

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