Mashreq Capital downgraded by Moody’s

Moodys_websiteDubai-based investment manager Mashreq Capital (DIFC) has paid the price for its high turnover of chief executives – four in less than 10 months - after it was downgraded by rating agency Moody’s. Mashreq’s investment manager quality assessment went from MQ2 to MQ3, reflecting a weakening in management quality, stated the rating agency. Following the departure of the first CEO in 2016, Mashreq installed an interim CEO followed by an appointment from outside the company before then settling on its current chief executive Robert Hahm, a longstanding member of the management team. “The high CEO turnover has had a direct impact on the company's ability to execute on its strategic business initiatives,” stated Moody’s. The rating agency also cited a decline in assets under management and the continued weak investment performance of its equity products as contributory factors in the downgrade. However, the positive performance of Mashreq’s fixed income funds, which make up the bulk of its assets under management, did offset some of the aforementioned negatives, stated Moody’s. ©2018 funds global mena

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