I. RATING REPORT
The Slovak Rating Agency upgrades the rating of the asset management company VÚB Asset Management, a.s. as follows:
| Long-term rating | BBB+ (stable outlook)
|
| Rating of management quality | Q3+
|
The assigned long-term rating of BBB+ (stable outlook) is on the level of risk of the Slovak Republic for transactions in foreign currencies (BBB+ stable outlook). The rating of the quality of management of VÚB Asset Management is Q3+, which translates as an above average standard of process management, portfolio management and the ability to appreciate the influences of the external environment.
Justification:
- VÚB Asset Management is one of the leaders on the Slovak market of open-ended unit trusts. With the volume of managed assets comprising SKK 15 billion as of 5.11.2004, it maintains its position as one of the strongest three entities on the market. Pursuant to a change of legislation the asset management company acquired a license for the management of individual portfolios of clients and for consulting activities, which creates the perfect requisites also for further expansion of the volume of assets that it administers.
- The strengths of the asset management company continue to be its system of internal management and portfolio management. The regulatory base of the company is on a very good level. The introduction of a new information system in 2004 was an important qualitative change regarding the running of the company and its investment funds. The objective of the company is to further strengthen the system for better quality risk management of investment portfolios, which is deemed positive by the agency.
- An advantage that the asset management company holds over its competitors continues to be its integrated system for the marketing policy as part of the VÚB group and a broad network of branches and sales points of the bank. Using a system of coaching sellers the company not only aims to ensure quality services are provided in the case of investments, but also to ensure that small investors are educated and long-term business relations with them are built up.
- VÚB asset management is the only company of its kind in Slovakia to publicise benchmarking information on its administered unit trusts on its internet site, which the agency regards as positive. The publication of benchmarking is regarded by the agency as a fundamental element in creating transparency on the market of collective investments in Slovakia.
Please don't hesitate to address your questions to autner@slovakrating.sk, or call +421 2 5464 5151.
Slovak Rating Agency
Bratislava, 16 November 2004