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June 14 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has upgraded CDG Capital Gestion (CKG) asset manager rating to ‘Highest Standards(mar)’ from ‘High Standards(mar)'. The Outlook is Stable.
The upgrade reflects the strengthening of CKG’s risk management and control framework: the appointment of an independent risk manager, documentation of update of risk policies and procedures, formalisation of key investment risk parameters and the implementation of a constraint server for compliance monitoring.
The rating also reflects CKG’s long track record in serving institutional clients and solid market position in the Moroccan asset management industry, as well as the financial strength of its parent, CDG Group.
The main challenges facing CKG are to continue efforts to diversify its client base (still concentrated towards institutional investors compared to peers) by capitalising on the network partnerships established (CIH, and recently ABB ), and stabilising the teams after some internal mobility and recruitments.
CKG’s ‘Highest Standards(mar)’ rating is based on the following category scores:
Asset manager operations in the ‘Highest Standards(mar)’ category demonstrate an investment platform and operational framework that Fitch considers superior relative to the standard applied by domestic institutional investors.
As the second-largest asset management company in Morocco, CKG benefits from a strong track record and market presence in the institutional space with a growing penetration of the retail market. CKG is well staffed and has a track record of profitability. However, the company has witnessed recent turnover in the equity team and the arrival of a new CEO in 2012. The organisation has been strengthened with the recruitment of a dedicated analyst and a trader; as well as the appointment of a Risk Manager, formerly Head of Middle-Office.