Press Release

JCR-VIS Re-affirms Management Quality Rating of Al- Meezan Investment Management Limited at AM2

Karachi, April 15, 2011: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the Management Quality Rating of Al-Meezan Investment Management Limited (AMIM) at ‘AM2’ (AM-Two). Outlook on the rating is ‘Stable’.

AMIM has eight funds under management, including two closed end schemes, with cumulative AuMs of Rs. 26b at December end 2010, largest amongst private sector AMCs. The investor base is strong with over 15,000 investors at June end 2010 in the open-end funds under management. Unit holding pattern features relatively low concentration vis-à-vis peers, with 43% of net assets of open-end funds contributed by retail investors. There is nevertheless room for further improvement.

Funds managed by AMIM having equity exposures have posted competitive returns vis-à-vis peers, though both Meezan Islamic Fund and Al-Meezan Mutual Fund have under-performed benchmark on account of being under-weight in two large index constituents, in recent periods. The performance and risk profile of Meezan Sovereign Fund and Meezan Cash Fund is also sound. Meezan Islamic Income Fund has experienced some delinquencies, affecting the risk profile of the fund. The selection and monitoring of fixed income instruments may be streamlined further. For income funds under management, benchmarks may need to be adjusted to make comparison more meaningful.

AMIM has a dedicated team of experienced professionals, who have now had a lengthy association with the company. The investment committee benefits from an adept research team which provides continued support to the investment management function through in-depth micro and macro level analyses. Implementation of the asset management module of Temenos is planned for the on-going year, which will streamline the current IT infrastructure. Reporting capabilities will be tested over time.

The mutual fund industry currently enjoys strong institutional investor base in view of the tax advantage. Industry participants have yet to establish a strong foot hold in the retail market. Going forward, differentiation in product offering and superior customer services may enable companies to distinctly position themselves.

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

Faheem Ahmad
President & CEO

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 not an NRSRO and its credit ratings are not NRSRO credit ratings.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 2011 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