RAEX (RA Expert) rating agency confirmed the reliability and service quality rating of “RWM Capital” Asset Management at A+ level “Very high level of reliability and quality of services”; rating outlook is “stable”.
Positive impact on the rating had the presence of “anchor” customer (according to the agency, as of 31.30.2016, MC had an “anchor” customer with A ++ rating from RAEX (RA Expert), to which over 50% of assets under management were accrued), high quality organization of the investment process, a moderately high-quality organization of the risk management process. MC is also characterized by CEIF moderately high management (for 31.03.2013-31.03.2016, the average annual growth rate of NAV of three largest CEIF constituting 69% of assets under management amounted to -1.7%, -11% and 15%); low infrastructure risks (the depositories and broker with which the company cooperates, have a high credit rating) and a high level of profitability (at the end of 2015: ROA = 25%, ROE = 27%). In addition, analysts have noted a low susceptibility of assets under management to equity risks (as of 31.03.2016, the share of liquid bonds amounted to 4.8% of assets under management), a moderately low level of susceptibility of assets under management to credit risks (as of 31.03.2016, the share of bonds of issuers without credit ratings amounted to 12.9% of assets in TM), and a moderately high level of information transparency.
“RWM Capital” is characterized by a moderately high level of reliability of own fund investments. Thus, as of 31.03.2016, 57% of the assets in its structure were presented by means in the brokerage account of IC with an A ++ reliability rating from RAEX (RA Expert), 10% - in cash in banks with rating of no lower than A level of RAEX scale (RA Expert). This has had a positive impact on the rating of IC,” says leading analyst for corporate ratings of RAEX (RA Expert) Stanislav Lushin.
Among the deterrents on the rating, low levels of the capital adequacy in relation to the operating expenses were marked (as of 31.03.2016, the sufficiency of own funds with respect to payments for 2015, adjusted for the standard, was 0.5), as well as a low level of liquidity of assets under management (as of 31.03.2016 the share of equities and bonds of not the first level of quotation or unlisted securities, as well as real estate objects amounted to 95% of the assets under management of MC) and a low level of diversification of activities (as of 31.03.2016, 100% of the assets under management were CEIFs) were noted. In addition, a moderately low level of diversification of the assets under management has been noted (as of 31.03.2016, the share of the largest investment object – real estate as a part of one CEIF accounted for 37% of the assets under management); there are a moderate reduction of the assets under management (for the first quarter of 2016, the assets under management were down by 4% at the average market dynamics of + 8%), and a reduction of net profit (for 2015, MC’s net profit was reduced by 38%).
“RWM Capital” Asset Management (License No. 21-000-1-00798 dd. March 15, 2011) carries out activities on assets management. By 31.03.2016, the volume of assets under management of the company amounted to 31.6 billion rubles, own funds – 143 million rubles. As of 31.03.2016, MC was 33rd in RAEX ranking (RA Expert) in terms of funds under management, and 11th in terms of assets in CEIFs.
Media Contacts: pr@raexpert.ru, tel.: (495) 617-0777
Applicable rating methodologies: a method of assignment of reliability and service quality rating to MC http://raexpert.ru/ratings/managing/method/. Key sources of information: data provided by “RWM Capital” Asset Management, CB RF, RAEX (RA Expert).
The first reliability and service quality rating was assigned to the entity to be rated (the object of rating) on 12.05.2012. The previous release of the rating action with respect to the rated entity (the object of rating) was published on 30.07.2015. A Rating Committee in relation to the published rat-ing action was held on 21.07.2016. Revision of the rating outlook is expected no later than in 12 months. The reliability and service quality rating was initiated by the object of rating, the object of rating took part in the rating assignment, and the agency received remuneration for its services. For the last 12 months, the Agency hasn’t provided the entity to be rated (the object of rating) with any additional services (other than credit rating assignment and maintain).
Rating was assigned on a national scale, unless otherwise specified. The rating and outlook assigned do not contain any restrictions, including those relating to the quality of information available to the agency.
The number of participants of the Rating Committee was sufficient to ensure a quorum. A responsible analyst presented to the members of the Rating Committee the factors affecting the rating; the Committee members expressed their opinions and suggestions within the approved methodology of appropriation of this type of rating. The Chairman of the Rating Committee provided an opportunity for each member of the Rating Committee to express their opinion before the voting procedure.
The ratings reflect the opinions of RAEX Rating Agency (RA Expert) and are not an established fact or a recommendation to buy, hold or sell certain securities or assets, or to make investment decisions. The Agency shall assume no liability in connection with any consequences, interpretations, conclusions, recommendations and other activities directly or indirectly related to a rating assessment committed by the agency within rating actions, as well as in relation to the findings and conclusions contained in the rating report and press releases, issued by the Agency, or for the absence of all the above. The only source that reflects the current state of the rating is an official website of RAEX Rating Agency (RA Expert) www.raexpert.ru.
