PACRA Maintains Asset Manager Rating of Al Meezan Investment Management Limited
Lahore, December 30, 2019 (PPI-OT): The rating reflects the Company’s established standing in the asset management industry, as the largest Asset Management Company in terms of AUMs and pioneer in Shariah Compliant investments in Pakistan. The rating incorporates the Company’s strong brand name, structured investment process and governance framework, qualified management team and solid track record of AUM growth.
The Company has segregated Compliance and Audit function in line with the best practices to strengthen its control environment. The Company enjoys a robust and diversified customer base, with a high proportion of retail investors compared to peers. The Company’s association with Meezan Bank Limited – the largest Islamic bank – and ensuing synergies have supplemented funds growth.
With a comprehensive portfolio of seventeen open-end Shariah Compliant mutual funds including a voluntary pension scheme, the Company offers a wide range of products for its customers, although it cannot offer certain conventional products when compared to peers. The Company’s fund performance lagged peers in recent periods but has improved lately and remained around the benchmark. The profitability of the Company has declined in FY19 and remained under pressure during 1QFY20. This is expected to improve with better stock market performance, going forward.
The rating is dependent upon the Company’s ability to sustain its market share and upholding strong investment processes and control environment. Meanwhile, consistent performance of funds compared to benchmark and peers is critical. Any sustained downturn in fund performance and/or significant loss in market share will impact the rating.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan