Expert RA, a rating agency, confirmed the A++ trust and service quality rating of TKB Investment Partners Asset Manager with a stable outlook.
Expert RA ranked the Company as # 5 for total assets under management as of June 30, 2020 that contributes to the positive assessment of its market positions. The rating is upheld by the anchor client who ensured over 50% of the Asset Manager income for the trust administration of property between March 31, 2019 and March 31, 2020.
Quality of assets under Company’s management is graded as high. The agency has also positively assessed the high diversification of the managed assets.
Company’s management of its key market portfolios was rated as moderately high: the 3 year average weighted yield of the Pension Savings Portfolio of Non-State Pension Funds got to 7.96%, of corporate client funds under Individual Trust Management was at 15.34% while the Portfolio of Military Mortgage Savings for 2 managed years performed at 8.11%.
Between March 31, 2019 and March 31, 2020 the trust management fees covered operational expenses by 384.6% which has positively affected the rating. The agency also recognized the Company’s high return on business ratio (the return on equity determined via Company’s net profit margin between March 31, 2019 and March 31, 2020 was 170.4%).
The agency identified a high capital adequacy ratio in relation to Company’s operating expenses as a positive factor (as of March 31, 2020 the capital adequacy ratio stayed at 130.8%). The high quality of Asset Manager’s own equity compared to its book value (as of March 31, 2020 the asset quality ratio was at 83.4%) along with the high liquidity ratio (as of March 31, 2020 the current liquidity ratio was 5.09) have favorably impacted the rating.
The high proficiency of Company’s investment framework and the quality of its IT system have moved the rating up. The level of risk management received high marks of the agency.
The trust and service quality rating of TKB Investment Partners (JSC) followed the Asset Managers’ Rating Methodology for Trust and Service Quality that came into force June 08, 2020.
Key informational sources for the rating review were TKB Investment Partners (JSC), the Bank of Russia, and Expert RA. The data used by the Expert RA Agency during the rating review was sufficient to apply the methodology.
Source: Rating Agency Expert (Expert RA)