Press Release

JCR-VIS Upgrades Fund Stability Rating of Meezan Islamic Income Fund

Karachi, December 29, 2017: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has upgraded the Fund Stability Rating (FSR) of Meezan Islamic Income Fund (MIIF) to ‘A(f)’ (Single A (f)) from ‘A-(f)’ (Single A Minus(f)). The previous rating action was announced on December 30, 2016.

Rating action incorporates revision in credit risk criteria for the fund whereby MIIF will limit its exposure to minimum ‘A’ rated securities (Previously ‘A-’ rated securities). Actual asset allocation has remained in line with credit risk guidelines set in the investment policy with exposure in A and above rated investment avenues over the review period. Duration of the fund has also remained in line with JCR-VIS’s criteria for the assigned rating. Going forward, rating of the fund will remain dependent on complying with above stated credit risk policy and maintaining duration of the fund in line with JCR-VIS’s criteria for the assigned rating.

Fund size rose by 30% and amounted to Rs. 11.8b (FY16: Rs. 9b) at end-June’2017. Proportion of retail investment increased to 47% (FY16: 42%), which led to dilution in concentration with top 10 investors accounting for a reduced 36% (FY16: 39%) share of net assets.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 201) or the undersigned (Ext: 207) at 021-35311861-70 or fax to 021-35311872-3.

Jamal Abbas Zaidi

Applicable rating criteria: Fund Stability Ratings (December 2017)

Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. JCR-VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2017 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited