Press Release

JCR-VIS Upgrades Management Quality Rating of Al- Meezan Investment Management Limited to AM2

Karachi, February 04, 2010: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has upgraded the Management Quality Rating of Al-Meezan Investment Management Limited (Al-Meezan) from ‘AM2-’ (AM – Two Minus) to ‘AM2’ (AM -Two). Outlook on the rating is ‘Stable’.

The company is managing seven funds, with the product offering catering to investors at both ends of the risk spectrum. Funds under management aggregated Rs. 16.2b at end-December 2009. In relation to other AMCs, decline in aggregate net assets was less pronounced in FY09; subsequent improvement in net assets has also been on the higher side.

Al-Meezan’s funds carrying equity exposures have been amongst the top performing funds in their respective categories for the calendar year 2009. In the preceding year, the extent of capital erosion in Al-Meezan’s pure equity funds was considerable though performance was better than the benchmark. Analytical expertise in the area of fixed income securities has also matured over time, though there remains room for further improvement. Moreover, selection of fixed income securities is restricted on account of limited universe of Shariah Compliant instruments.

The philosophy of the Board has cascaded down to the management, who has now had a lengthy association with the company. While personnel at senior management positions are proficient in their area of operations, further strengthening in terms of additional staff may be required at second tier to provide continued support to the investment management function.

Size of retail base in open-end funds of the company is considerable in relation to peers. The franchise of Meezan Bank Limited has played significantly to the advantage of the AMC. The ability of the company to maintain their current franchise will depend both on performance trends and ancillary services.

The asset management industry has undergone significant stress over the past one and a half years and recovery in terms of fresh inflow of funds may remain slow. Furthermore, issues with respect to pricing of corporate debt instruments and lack of liquidity in the market also remain a source of concern.

For further information on this rating announcement, please contact Ms. Sobia Maqbool (Ext: 506) or Ms. Sabeen Saleem (Ext: 510) at 35311861-70 or fax to 35311872-3.

Safdar Kazi

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited VIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2010 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited