National Rating Agency Confirms Rating Bank of Moscow
OREANDA-NEWS. May 18, 2009. The National Rating Agency (NRA) has confirmed the individual reliability rating of the Bank of Moscow Group of Management Companies at the “ААА” level (maximum reliability). The Bank of Moscow Group of management companies includes MC Bank of Moscow and MC Pension Reserve.
MC Bank of Moscow was founded in 1996 and is now one of the leaders on the mutual investment market. In terms of its net asset value, MC Bank of Moscow is among the Top-5 biggest management companies in Russia. MC Bank of Moscow specialises in managing unit investment trusts and pension reserves of non-state pension funds and, since 2008, has been actively developing its individual trust management activities with respect to the funds of institutional investors. Its core activity is now the retail sphere of mutual investments. The company manages 15 mutual investment funds. The investment strategies of the funds allow the potential investor to diversify his or her investments, guided by their individual wishes regarding the risk level, based on use of a broad range of instruments. On the basis of the results for the first quarter of 2009, the assets of the unit investment trusts managed by the MC amounted to RUR3 547.1 mln (78.1% of the total assets under the company’s management). Market clients are attracted through a ramified agents’ network, above all branches and subsidiaries of the Bank of Moscow. At the same time, since the beginning of 2009, the number of agency outlets has been increased by 15 from 442 to 457 sales outlets.
MC Pension Reserve manages the accumulated pension funds of Russian citizens, pension reserves of non-state pension funds and the assets of a unit investment trust pursuing a long-term conservative strategy designed to grow savings, including by accumulating funds towards a future pension. The predominant proportion of the aggregate assets of the company currently consists of pension accumulations transferred to the MC from the Pension Fund of the Russian Federation (RUR 1 413.3 mln, 82.8% of the aggregate assets managed by the company). In the NRA rating of the quality of pension accumulation management, MC Pension Reserve belongs to the group with “maximum quality level of pension accumulation management”. The accumulated pension funds are managed within the scope of a moderately conservative strategy.
Within the framework of risk minimisation and increasing control over proper implementation of investment strategies, the risks of the group of companies are managed at the level of the Bank of Moscow. The risk management system within the group has been re-orientated in consideration of the current difficult situation on the financial markets, the existing limits have been made more stringent and have been reviewed and precise control is exercised over the actions of the management companies. The activities of the investment committee help improve the quality of the investment process.
The universal nature of the companies’ products and services are given a positive appraisal. New popular investment products are being created that are orientated on gaining an income for the clients on the current market situation, and the sales and service infrastructure for clients is being improved. The capital adequacy level of the companies is maintained at a good level. The financial status is stable, asset liquidity sufficient, and the level of the investment risk coefficients is acceptable.
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