Press Release

JCR-VIS Maintains Rating of Al Meezan Investment Management Limited
 

Karachi, December 28, 2018: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has maintained the Management Quality Rating of Al Meezan Investment Management Limited (AMIML) at ‘AM-1’ (AM-One). The previous rating action was announced on December 29, 2017.

The assigned rating reflects strong Islamic asset-management franchise and healthy assets under management (AUM) profile with sizeable retail AUMs, adequate governance & control framework, stable & professional management team and well defined investment process. AMIML offers a comprehensive product suite of investment plans and mutual funds spanning from basic equity and income funds to commodity fund. However, absence in conventional funds is a disadvantage vis-à-vis conventional peers. Significant retail client base along with high proportion of retail AUMs vis-à-vis peer AMCs is a competitive advantage. Moreover, aggressive branch and sales force expansion along with strong focus on digital marketing initiatives is expected to further enhance customer base. Overall corporate governance framework is supported by adequate board composition and oversight. Scope and operations of compliance and audit function are considered satisfactory. However, compliance with best practices requires segregation of these functions.

The investment decision making process is well-structured and is committee based with the participation of key senior management personnel. Investment team has been further strengthened in the ongoing year with addition of senior resources. However, performance of equity funds under management remained weak for the second consecutive year with large funds posting returns weaker than benchmark. Resultantly, outlook on the assigned rating has been revised from ‘Stable’ to ‘Negative’.

For further information on this rating announcement, please contact undersigned (Ext: 207) or Mr. Javed Callea (Ext: 201) at 35311861-70 or fax to 35311872-3.

Jamal Abbas Zaidi
Advisor

Applicable Rating Criteria: Mutual Fund Rating (March 2016)
http://www.jcrvis.com.pk/docs/AMC-Methodology-201603.pdf

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Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-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. JCR-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. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-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 2018 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited