AL MEEZAN INVESTMENT MANAGEMENT LIMITED

S.KAMAL HAYDER KAZMI,
(feedback@pgeconomist.com)
Research Analyst
, PAGE
Apr 9 - 15, 2012

SHAREHOLDING PATTERN (% )

Meezan Bank Limited 65
Pak Kuwait Investment Company (Pvt.) Ltd. 30
Employees of Al Meezan 05

Al Meezan Investment Management Limited (Al Meezan) is one of the leading private sector asset management companies in Pakistan with a huge investor base of over 18,000 retail and 300 institutional clients.

Al Meezan is a joint venture of Meezan Bank (MBL) and Pak Kuwait Investment Company (PKIC), dedicated to providing Shariah compliant investment solutions. It specialize in investment management, specifically developing, floating and managing both open and closed end mutual funds, investment advisory and the discretionary management of institutional as well as high net worth individuals (HNW) portfolios. It is registered with Securities and Exchange Commission of Pakistan (SECP) and is regulated under the Non-Banking Finance Companies (NBFC) rules 2003 and NBFC Entities Regulations 2007. It is licensed to provide investment advisory, asset management, and investment finance services.

Since 1999, this institution recognizes Asia's top financial institutions for excellence in the industry. It has a reputation for delivering authoritative unbiased coverage and independent research of Asia's financial industry.

It also has the distinction of having been assigned Management Quality rating 'AM2' by JCR-VIS, which denotes high management quality rating. Al Meezan has been awarded 'Best Islamic Asset Management House in the country (Islamic Finance Awards) by Asset Triple A awards, Hong Kong. The Asset Triple A Awards is a key component of The Asset Publishing and Research Limited is an integrated multi-media company serving the community of leading corporate and financial decision makers in Asia.

Meezan Islamic Fund (MIF) is Pakistan's largest equity fund in the private sector. It is the flagship fund and has been rated 5-Star by JCR-VIS. MIF was launched in 2003 as the first open end mutual fund of Al Meezan.

Presently, Al Meezan offers a Meezan Tahaffuz Pension Fund (MTPF), which is a saving mechanism where an individual saves from his/her income during work life in order to retain financial security and comfort in terms of regular income stream after retirement. MTPF provides investors a chance to save for a regular and Halal income stream after retirement. MTPF comprises of three sub funds - Equity sub-fund, Debt sub-fund and Money Market sub-fund. Participants will be offered various investment allocation schemes offering levels of investment in the three sub funds, depending on their investment horizon, return requirements, risk tolerance and any unique circumstances.

Al Meezan Investments presents a monthly income plan - Meezan Mahana Kharch Account. This Account aims at providing the clients a stable and Halal Income stream to meet its periodic liquidity requirements through a systematic redemption of units with long-term capital preservation.

Al Meezan also acts as the investment advisor to its corporate clients. It helps their clients in developing investment policy and advises them for making necessary changes to investment policy from time to time.

Al Meezan exercises the due diligence and uses best judgment to advise their clients to undertake trading activity. It also advises new investments, revision of investments and recommends investment strategies in line with the objects stated in investment policy.

As an investment advisor, Al Meezan currently offers both segregated and pooled portfolio management solutions. Al Meezan offers clients a wide range of value added services which enable them to track and manage their investments. These services include internet banking services, email services, SMS alerts, E-statements, ATM facility and customer services.

FINANCIAL PERFORMANCE

During the half of the fiscal year 2012, Meezan Islamic fund posted a negative return of four per cent, while the fund earned a total income of Rs162 million as compared to Rs621 million during the same period last year (SPLY). During the same period 2012, Al Meezan Mutual Fund (AMMF) posted a negative return of four per cent while the benchmark index KMI-30 declined by 3.81 per cent to close at a level of 20,138.

FINANCIAL PERFORMANCE (RS. IN '000)

INDICATORS DEC 31, 2011 JUNE 30, 2011
Total Assets 4,377,718 4,586,277
Total Liabilities 31,394 89,142
Total Income 161,742 621,334
Profit/Loss for the Period (182,455) 816,854

AMMF was converted from a closed fund to open end fund in 2011. The fund earned a total income of Rs80 million during the period under review while the major contributors remained the dividend income of Rs48 million and realized gains on sale of investments of Rs24 million.

Furthermore, during the first half of fiscal year 2012, Meezan Islamic income fund (MIIF) provided annualized return of 2.8 per cent as compared to benchmark return of six per cent. During the period, the fund earned income mainly from profit on Sukuk certificates, which was Rs125 million, while the profit on deposits was Rs43 million. Meezan Sovereign Fund (MSF) provided as annualized return of 1.2 per cent to its investors as compared to benchmark return of 8.3 per cent during the period under review.

The fund earned a gross income of Rs960 million as compared to Rs146 million during the SPLY. During the half of the fiscal year 2012, Meezan Cash Fund (MCF) earned a gross income of Rs388 million as compared to Rs35 million during the SPLY.

FUTURE OUTLOOK

The management of Al Meezan investment should focus on their balance sheet indicators and increase the performance in the markets although the macro economic indicators of Pakistan's economy are not in favor of the company.