Press Release

Fund Stability Rating of Meezan Sovereign Fund

Karachi, December 29, 2017: JCR-VIS Credit Rating Company Limited (JCR-VIS) has revised the Fund Stability Rating of Meezan Sovereign Fund (MSF) to ‘AA- (f)’ (Double A Minus (f)) from ‘AA (f)’ (Double A (f)). Previous rating action was announced on December 30, 2016.

Rating action incorporates higher exposure to market risk assumed by the fund which is not commensurate with JCR-VIS’s benchmark for the assigned rating. Duration of the fund has consistently exceeded the 90 day criteria for a AA rated fund. Moreover, the fund has also taken exposure in A+ rated investment avenue which is not in compliance with credit risk criteria for a AA rated fund.

MSF operates as an open-end Shariah compliant sovereign fund. The offering document requires the fund to maintain a minimum 70% of net assets in government backed/issued securities. Barring two exceptions, the fund has remained compliant with the stipulated limit over the review period. At end-June’2017, net assets of the fund declined to Rs. 4.3b (FY16: Rs. 7.9b) owing to redemptions by associates. However, Assets under Management (AUM) profile improved with increase in proportion of retail AUMs and reduction in unit holder concentration.

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