Saudi Arabia’s largest asset manager NCB Capital has been assigned a management quality (MQ) assessment of MQ1 by rating agency Moody’s.
Moody’s referred to the firm’s well-defined investment practices, clear corporate strategy, deep product offering, above average performance and growth in assets under management (AuM) over the last five years ($32.9 billion as of December 2017) as the primary factors in awarding such a positive rating.
The agency also highlighted the strong market position of the fund manager’s parent company, National Commercial Bank, along with strong risk management practices that are incorporated into the investment practices.
Moody’s stated a number of scenarios that could jeopardise NCB Capital’s inaugural MQ rating, however. These include a deterioration in its funds’ risk-adjusted performance, a decrease in AuM, deviations in procedures that increase operational risk, the departure of key employees, or more geopolitical tension in the region that leads to a drop in oil prices.
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