Rating Agency RAEX (“Expert RA”) confirmed the A+ reliability and service quality rating of the RWM Capital Asset Management (“very high level of reliability and service quality”). The rating forecast remains “stable”.
In the process of rating analysis the following positive factors were determined: high quality of organization of investment process and risk management, high level of information transparency, moderately high quality of management of the largest close-end investment funds. Also the MC is characterized by moderately high level of diversification and reliability of investment of assets under management (as of 31.03.2015 62% real estate objects, 19% listed obligations of issuers with rating at least A according to RAEX (“Expert RA”), 3% funds and deposits). The experts point out the high level of diversification and reliability of investments of own funds (as of 31.03.2015 47% obligations of issuers with rating at least A according to RAEX (“Expert RA”), 29% funds in banks with rating at least A according to RAEX (“Expert RA”), high level of profitability (for 2014 ROA=45%, ROE=48%). RWM Capital Asset Management constantly expands the range of projects financed through close-end investment funds. In the second quarter of 2015 the close-end investment fund financing agricultural lands in Moscow region was placed under management. Before the end of 2015 the MC is planning to acquire a commercial real estate facility as a part of the close-end investment fund “RWM Kapitalniy” which will ensure approximately 4% increase of assets under management.
Expansion and renewal of projects in close-end investment funds will allow in future to increase their diversification and the revenue base of the MC as well as strengthen its market position, – states Stanislav Lushin, the leading corporate ratings expert of RAEX (“Expert RA”). Besides, the analysts of the agency noted the high volume and moderately high growth of earnings as against the volume of assets under trust management (for year 2014 11 thousand Rubles for 1 million Rubles of assets under management where the average monthly rated value amounts to 5,4 thousand Rubles; for year 2014 the index value increased by 9%).
Among the factors restraining the rating level the following factors were stated: low level of sufficiency of own funds as against operational expenses (0,33 for 2014), decrease of the volume of own funds (-9% in the first quarter of 2015), moderately low results of management of the largest close-end investment funds (the net asset value of the close-end investment funds “RWM Megapolis”, “RWM Russian Transit” and “RWM Kapitalniy" decreased by 6,3%, 32,7%, 3,4% respectively for the time period between 31.12.2012 and 31.12.2014), low level of business diversification of the MC (99,99% of assets under management is accounted by close-end investment funds). Besides, the analysts note the low level of diversification of projects of close-end investment funds of the MC, growth of the amount of operational expenses (+35% for year 2014) and unstable net profit dynamics.
In accordance with the data of trust management monitoring performed by RAEX (“Expert RA”) based on the results of the first quarter of year 2015 RWM Capital Asset Management is the 35th on the market in aggregate amount of assets under management and the 9th place in the amount of assets in close-end investment funds.
Link to RA-Expert
http://www.raexpert.ru/releases/2015/Jul30b
