JCR-VJS Credit Rating Company Limited (JCR-VIS) has assigned Management Quality Rating of 'AM2-' (AM-Two Minus) to IGI Funds Limited (IGIFL). Outlook on the assigned rating is 'Stable'. The assigned rating takes into account the sound governance structure instituted at the management company.
The Board of Directors (BoD) of IGIFL comprises qualified personnel with diversified backgrounds. Policies to deal with conflict of interest are also well defined. Management resources at the company comprise competent personnel. Some support services are shared at the group level. In the area of risk management, which is also a group shared service, policy manual has been developed to broaden the scope of risk management and its full scale implementation will be tracked over time, including the resources deployed for this function.
The AMC is primarily engaged in floating and managing mutual funds. In addition to this, portfolio management of investment advisory mandates mobilised by the parent company is also supervised by IGIEL. These mandates are largely non-discretionary in nature. Actual asset allocation of Separately Managed Accounts (SMAs) is in line with portfolio mandates and returns are competitive vis-â-vis respective benchmarks. The deployment of proposed on-line portal is expected to improve the access of SMA clients to information related to their portfolio.
The company has five funds under management. A degree of conservatism emanates from the BoD, as reflected by the decisions taken during and after the crisis in the local capital markets. The income fund under management has mostly remained insulated from the credit failures in the market and returns have remained consistent. Return of IGI Stock Fund is dose to the peer group average. The recently acquired fund from another AMC comprises high proportion of high risk assets and portfolio restructuring is being undertaken to improve risk profile.
Marketing of the funds under management has room for improvement as aggregate number of unit holders in all open-end funds combined is currently very low. The in-house sales team is proposed to be strengthened, which will focus on both corporate and retail segments.-PR
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