MARC assigns ‘IMR-2’ to Kenanga Investors

KUALA LUMPUR: Malaysian Rating Corp Bhd (MARC) has assigned an investment manager rating of “IMR-2” to Kenanga Investment Bank Bhd’s fund management arm Kenanga Investors Bhd (KIB).

The rating reflected its well-established investment process, strong risk management practice and operating track record.

MARC said these factors were counterbalanced by KIB’s moderate size and financial profile. Its portfolio comprises 26 unit trust funds, 20 wholesale funds and seven private retirement funds as at December last year.

Its assets under management (AUM) stood at RM7.1 billion, accounting for one per cent of total AUM in Malaysia.

MARC said KIB’s AUM registered a steady growth over the last two years and it expected the pace to be maintained over the medium term.

It said KIB’s investment management process as comprehensive investment analysis, supported by appropriate information systems that allowed for methodical analysis and timely investment decisions.

“KIB also benefits from sharing common resources with its wholly-owned subsidiary Kenanga Islamic Investors Bhd,” it said.

MARC said KIB’s profitability had been affected by the recent weak market conditions, which had weighed on its funds’ performance. Additionally, given its modest AUM size, management fees covered its operating expenses.