Mídia
Mídia
Todas as notícias
Moody’s affirms JGP’s manager quality assessment of MQ1
Moody’s
New York, June 28, 2021: Moody’s Investors Service (“Moody’s”) has today affirmed JGP Gestão de Recursos Ltda. (JGP)’s MQ1 Manager Quality Assessment (MQA). The MQ1 assessment reflects Moody’s opinion that the asset manager has excellent management attributes.
RATINGS RATIONALE
JGP’s MQ1 Manager Quality Assessment is based primarily on: (i) the solid risk-adjusted return of its investment funds, (ii) its disciplined investment process, (iii) its strong fiduciary culture and well-established risk control procedures, (iv) the high level of expertise and qualification of its team of professionals and (v) the consistent growth of its assets under management. Moody’s considers that its main challenges are: (i) sustaining the level of its risk-adjusted investment returns, (ii) continue to growth considering the competitive landscape.
JGP’s investment process involves both “top-down” and “bottom-up” approaches, with a strong focus on long-term capital preservation. At first, the investment and macroeconomic teams identify general market trends based on the economic and politic environments, both locally and globally. The process then focuses on identifying investments that will be beneficiated from the identified trends, with a deep analysis of companies and financial instruments that should beneficiate the most from them. In order to do so, JGP utilizes both fundamental analyses, seeking to optimize the risk vs. return relationship, that are then complemented by technical analysis, momentum and market sentiment analyses. The investment decision process follows a series of fundamental principles, including diversification, pricing discrepancies, correlation analysis and use of “stop losses”. Moreover, liquidity considering market cycles is used as a pillar to define position sizing, in accordance to each fund’s objectives. Even though the investment process is framed by a series of committees, the portfolio managers have certain autonomy on investment decisions and allocations, within strict risk limits.
We observe that the funds have shown a strong risk-adjusted returns compared to both their benchmarks and their peers. Funds have consistently reached their investment objectives.
JGP reported solid financial metrics, and its operating and profit margins continue to be strong. Moreover, the company’s financial flexibility benefits from its consistent assets under management growth over the years. The solid investment performance allows for the asset manager to charge performance fees on its funds, that also supports the company’s financial profile. The company has been operating since 1998 and was able to invest in its infrastructure and hire investment professionals to retain its sound investment practices. Besides fund management, the company also offers wealth management services, inheritance solutions as well as some other ancillary services. The diversity of its revenue streams is another factor supporting the company’s financial stability and MQ assessment.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The MQ1 assessment should be downgraded if: 1) the risk-adjusted return of its investments funds deteriorates, compared to its benchmarks and peers, 2) the company’s assets under management suffers from a relevant fall, 3) there were significant changes to the company’s processes, increasing operational risks or 4) if a key person were to leave the company resulting in material impact on the investment management activities and/or the financial profile of the company.
JGP is one of the largest independent asset managers in Brazil, offering a wide range of funds, including multimarket and equity funds with different strategies and levels of risks. In 31 December 2020, its assets under management reached BRL33.8 billion ($5.9 billion).
The methodology used in this rating was Investment Manager Quality Assessments of Asset Managers published in December 2019 and available here. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody’s legal entity that has issued the rating.
Original press release here.