Karachi, December 28, 2018 (PPI-OT): 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 and control framework, stable and 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 more information, contact:
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk