Muhammad Azmat Shaheen
PACRA assigns Initial Investment Advisor Rating to BMA Asset Management Limited
|Rating Type||Investment Advisor Rating|
|Long Term||AM3++ (ia)|
The assigned rating of BMA Asset Management Company Limited (" BMA-IA" or the "Company") takes into account the organizational structure changes, adequate governance framework, and good sponsor's profile. Previously, the Company was engaged in providing the Fund management services under the Collective Investments Scheme. Now, the Company will be acting purely in its capacity as an investment advisor. Resultantly, the Company will be going through a rebranding exercise. The assigned rating derives comfort from a well-defined investment process with tools to assess and monitor investment-related risks. Portfolios managed by the Company pertain to HNWI, corporate clients and contribution funds. The portfolios managed by the Company has shown a sizeable growth by since Jun'21. The total cumulative value of SMAs under the management of the Company has depicted an increasing trend in the period 9MFY22. Growth in SMAs was facilitated primarily by the addition of new clients. The composition of the portfolio comprises 95% discretionary and 5% non-discretionary portfolios. While the top ten investor's concentration was standing at an average of ~87% during 9MFY22. Specialized investment advisory services have gained popularity in recent years; Above-average performance of portfolios under management, both on the equities and fixed income side, is important to the efficacy of investment management processes at BMA-IA. Returns on the equity portion and fixed Income portion remained average during 9MFY22. Fee-based revenues have depicted a sizeable increase on account of growth in SMAs accounts. Capitalization levels of the Company are considered sound as the Company has a sizeable cushion over the regulatory limit.
Going forward, the longevity and stickiness of the investors under the SMA portfolio along with consistent performance track record and quality of of client servicing remain imperative for the assigned rating.
BMA Asset Management Company was incorporated in April 2005 and acquired the license for investment advisory and asset management in April 2005 and July 2005, respectively. Recently, the Company has revoked all funds falling under the CIS scheme and submitted a formal request to SECP to cancel the AMC license. The Company is a wholly-owned subsidiary of BMA Capital Management. Mr. Mian Qasim Saeed Ahmed joined the Company as CEO in August 2020 but he is currently working as president of the Company. The Company is now purely operating as an Investment advisor. The Company has a three-member board, all members are non-executive. Mr. Salim Khan is acting as the Chairman of the board since, October 2017. He possesses vast experience in strategic human resource consultancy and organizational development.