CARE Ratings Nepal revises and upgrades Fund Management Quality Rating CARE-NP AMC Quality 3+ to Sunrise Capital

CARE Ratings Nepal Limited (CRNL) has revised and upgraded the Fund Management Quality Rating (FMQR) ‘CARE-NP AMC Quality 3⁺ (AMC 3⁺)’ to Sunrise Capital Limited (SCL) from ‘CARE-NP AMC Quality 3 (AMC 3)’. AMC 3⁺ indicates adequate assurance on management quality of Asset Management Company (AMC).

The revision in FMQR rating assigned to SCL derives from the factors such as the sustained growth in scale of operations, overall Assets Under Management (AUM) of SCL coupled with better returns of the schemes marked by the better alpha and relatively lower beta of the schemes over FY22-9MFY23 (FY refers to the twelve-month period ending mid-July). The rating continues to improve strength from its strong fund sponsor/ shareholders, experienced board of directors and management team in merchant banking and overall banking services and professional fund supervisors. The rating also factors in SCL’s established track record of operations in merchant banking.

The FMQR, however, continues to remain constrained by evolving nature of Mutual Fund Industry, limited market diversification in the industry so far and volatile trend of Nepal Stock Exchange (NEPSE) index.