WHAT IS AN INSTITUTIONAL INVESTOR?
Institutional investors are entities that collect savings and invest these funds in financial markets. Institutional investors primarily include pension and provident funds, insurance and reinsurance companies, mutual insurance companies and other specialised financial institutions whose business is primarily to manage financial investments and generate a return on their capital.
WHY INVEST IN BMCE CAPITAL GESTION FUNDS?
- To benefit from expert guidance : our team of investment advisors is attentive to investors’ needs. They propose a fund portfolio allocation and provide all the information required for them to make their investment choices.
- To benefit from a wide range of funds : BMCE Capital Gestion offers a complete range of investment solutions covering all asset classes with differentiated strategies to meet institutional investors’ ever-changing needs.
- To benefit from high quality management : BMCE Capital Gestion is known for its management expertise across all asset classes based on its asset management philosophy by conviction and rigorous risk control.
- For its activity awarded in a number of areas by a number of different bodies:
- Fitch Ratings : BMCE Capital Gestion is rated ‘Highest Standards (mar)’ by Fitch Ratings. This rating is the highest awarded by Fitch Ratings within Morocco’s asset management industry.
- ISAE 3402 certification : BMCE Capital Gestion was the first asset management company in Morocco to obtain Type I and Type II ISAE 3402 global certification for the compliance of its internal control processes.
- ISO 9001:2008 certification : BMCE Capital Gestion was the first asset management company in Morocco to acquire ISO 9001:2008 certification, underlining the effectiveness of the company’s quality management system which covers all processes.
- Standard & Poor’s ratings : the FCP Capital Monétaire is the only Moroccan mutual fund to be rated by Standard and Poor’s. Standard & Poor's assigned the fund an ‘Af’ global rating, which acknowledges the credit quality of the assets held in the portfolio.
WHAT ARE THE MAIN RISKS RELATED TO MUTUAL FUNDS?
The assets held by a mutual fund reflect different risk categories :
- Credit risk : risk related to the probability of default arising from an issuer of debt securities failing to make an interest payment or to repay the capital ;
- Volatility risk : risk related to fluctuations in equity or bond prices ;
- Operational risk : risk related to systemic failure and breakdowns in the management company’s procedures with a resulting potential impact on the settlement of transactions ;
- Counterparty risk : risk related to default by a counterparty with whom a transaction has been initiated ;
- Foreign exchange risk : risk related to the depreciation of a currency against the portfolio’s base currency.
WHAT CONTROL MEASURES HAVE BEEN ADOPTED BY BMCE CAPITAL GESTION?
In order to best meet the requirement for strict control, BMCE Capital Gestion has adopted an internal control system that is enhanced by additional measures from external bodies. The various controls are enforced at six different complementary levels :
- BMCE Capital Gestion’s internal control system ;
- The custodian ;
- Internal control and compliance within BMCE Capital ;
- The "Autorité Marocaine de Marché des Capitaux", Morocco’s financial industry regulatory authority;
- The BMCE Bank audit;
- The statutory auditors.
HOW ARE THE CAPITAL GAINS EARNED BY A LEGAL ENTITY TAXED?
Capital gains earned by legal entities are not subject to a withholding tax at source. They are liable to corporation tax (IS) for qualifying companies.
WHAT ARE THE STEPS TO SET UP A DEDICATED/CUSTOMISED FUND?
Customised fund management is governed by a management mandate that specifies the fund’s main characteristics : legal form,asset class, benchmark index, management objective and investment strategy, frequency of NAV calculation, management fees and investor information.
The following process applies when setting up a dedicated fund :
- Signature of the management mandate between the client promoting the fund and the management company;
- Validation of the fund’s prospectus ;
- Preparation of the fund’s administrative dossier for filing with the AMMC : investment rules, AMMC authorisation, AMMC stamp of approval, publication in the Official Bulletin ;
- Convene a start-up committee for the purpose of drawing up an investment strategy.
WHAT ARE THE ASSET MANAGER RATING CRITERIA USED BY FITCH RATINGS?
Fitch Ratings, a rating agency, analyses asset management companies against a number of organisational, operational and financial criteria. The agency also appraises the management of various risks as well as analysing the control environment adopted.
BMCE Capital Gestion obtained the maximum “Highest Standards” rating in all areas analysed : company, controls, investments, operations and technology.
WHAT ARE STANDARD AND POOR’S FUND CREDIT QUALITY RATINGS CRITERIA?
Standard &Poor’s fund credit quality ratings, identified by the letter ‘f’, represent an evaluation of the overall credit quality of a fixed income portfolio. The rating reflects the level of protection that the fund provides against the risk of loss in the event of default.
The overall credit quality ratings range from ‘AAAf’ for funds which offer the highest level of protection against the risk of default to ‘CCCf’ for funds that are extremely exposed to risks of losses in the event of default.
BMCE Capital Gestion’s FCP Capital Monétaire fund is rated ‘Af’ for the credit quality of the assets held in the portfolio.
WHAT IS THE ISAE 3402 STANDARD?
The International Standard on Assurance Engagements 3402 or ISAE 3402 is a global assurance standard for reporting on controls at services organisations. First published by the IAASB (International Auditing and Assurance Standards Board) in December 2009, it replaced the SAS 70 (Statement on Auditing Standards 70) standard June,15 2011.
ISAE 3402 certification results in the publication of a report on the ISAE 3402-compliant internal control system which describes the key controls undertaken by the management company to ensure that the funds are managed in the best possible way.
WHAT DOES ISO 9001:2008 CERTIFICATION INVOLVE?
The ISO 9001:2008 standard establishes the requirements relating to a Quality Management System (QMS).
This standard is based on a certain number of quality management principles such as a highly client-centric, senior management’s motivation and commitment, adopting a process-based approach and ongoing improvement.
The ISO 9001: 2008 standard helps to ensure that clients obtain satisfaction from the products and services delivered.
HOW TO SUBSCRIBE?
You may subscribe to our funds directly by contacting your BMCE Capital Gestion investment advisor.
HOW MUCH TO SUBSCRIBE?
The subscription amount is at your entire discretion. You may benefit from tailor-made advice depending on your aims and restrictions by contacting your investment advisor directly.
WHEN TO SUBSCRIBE?
You may submit your subscription or redemption orders to the sales department prior to 10.30 am on any day that the net asset value is calculated.
WHAT ARE THE REGULATORY DOCUMENTS REGARDING A MUTUAL FUND?
Each mutual fund investor has access, by a number of different means, to a prospectus and a fund factsheet, approved by the AMMC (Autorité Marocaine du Marché des Capitaux).
The prospectus and factsheet for each fund are available on the BMCE Capital Gestion website or can be obtained from your investment advisor. We are also able to provide you, on request, with the latest interim and annual reports and the latest quarterly asset inventory, certified by the custodian.
HOW TO MONITOR THE PERFORMANCE OF A MUTUAL FUND?
You may contact your investment advisor to request an order confirmation, a copy of your investment account or a detailed report of your investment portfolio.
You may also monitor the performance of our funds via the BMCE Capital Gestion website or by signing in to your OPCVM Direct account.
Lastly, don’t hesitate to subscribe to our frequent publications by registering via OPCVM Direct or by sending us a request at the following address: contactbkg@bmcek.co.ma. You will receive information about financial markets and our range of funds on a regular basis.
HOW TO APPRAISE THE PERFORMANCE OF A MUTUAL FUND?
The performance of a mutual fund is represented by the change in its net asset value calculated at the start and end of the period under review plus any income distributed over the same period.
The performance of a mutual fund can be appraised using two complementary approaches:
- Absolute performance, which is the change in the fund’s net asset value over a given time period;
- Relative performance, which is the difference between the fund’s performance and its benchmark index.
