Karachi, December 30, 2016: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Fund Stability Rating (FSR) of Meezan Cash Fund (MCF) at ‘AA(f)’ (Double A (f)). The previous rating action was announced on January 12, 2016.
In accordance with the approved investment avenues, MCF’s returns are susceptible to movements in discount and bank deposit rate. As at end June’16, over three-fourth of net assets were held as cash, making the fund highly liquid. Weighted Average Time to Maturity (WATM) remained under the maximum limit of 90 days. Furthermore, the fund maintains minimum credit quality rating of AA for its investments.
As the interest rate environment remained low, return in absolute basis declined which led to sizeable redemptions manifested in the lower AUM of the fund. The redemption largely emanated from institutions due to which top ten investor concentration declined.
For further information on this rating announcement, please contact Mr. Jamal Abbas Zaidi (Ext: 207) or the undersigned (Ext: 201) at 35311861-70 or fax to 35311872-3.
Applicable rating criteria: Fund Stability Ratings (February 2012)
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