JCR-VIS Upgrades Management Quality rating of Magnus Investment Advisors Limited

Karachi, February 26, 2015 (PPI-OT): The Management Quality (MQ) Rating scale for Asset Management companies undertaking investment advisory services alone has been appended with the suffix IA to distinguish it from MQ Ratings for asset management companies outstanding by JCR-VIS Credit Rating Company Limited (JCR-VIS).

JCR-VIS has harmonized the previously outstanding rating of Magnus Investment Advisors Limited (Magnus) from ‘AM3+’ (AM-Three Plus) to ‘AM3+(IA)’ (AM-Three Plus (IA)). Further, JCR-VIS has upgraded the MQ rating of Magnus from ‘AM3+(IA)’ (AM-Three Plus (IA)) to ‘AM2-(IA)’ (AM-Two Minus (IA)). Outlook on the rating is ‘Stable’. The previous rating action was announced on July 16, 2013.

The assigned rating incorporates well-formalized investment process, qualified senior management team and adequate control infrastructure at Magnus. The rating also reflects policy framework and compliance culture of the firm which exhibits strong disposition towards self-regulation, transparency and disclosure to clients. Performance of both fixed income and equity portfolios of Magnus have been competitive in relation to respective benchmarks.

Total Assets under Management (AUMs) of domestic clients has increased over the years on account of addition of new clients and higher AUMs of existing clients. Client base of the company features reputed multinationals that have been associated with Magnus for a number of years.

While concentration in fee based revenues has declined on a timeline basis, the same continues to be on the higher side. In order to broaden customer base and to tap the gap in high net-worth and affluent individual’s segment, the management is expanding operations to offer wealth management services.

Board features experienced professionals with diversified background from the financial and industrial sectors. Addressing certain reporting line inconsistencies and enhancing functioning and composition of the Board and the Audit Committee will further enhance the governance framework at the institution. Senior management team comprises qualified professionals. In recent periods, stability has been observed at senior management level which bodes well for the organization.

For more information, contact:
Ms. Sobia Maqbool
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk

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