JCR-VIS Credit Rating Company Limited 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 rupees 26 billion 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 percent 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.-PR
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