Press Release

VIS Reaffirms Fund Stability Rating of Meezan Islamic Income Fund at A(f)
 

Karachi, December 30, 2019: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Fund Stability Rating (FSR) of Meezan Islamic Income Fund (MIIF) at ‘A(f)’ (Single A (f)). The previous rating action was announced on December 28, 2018.

MIIF is a Shariah compliant open end fund which aims to provide investors comparable returns by investing in diversified pool of debt instruments, bank deposits and other approved investment avenues subject to the necessary condition of capital preservation. As at end-November 2019, assets under management of the fund have witnessed a sizeable jump and were reported at Rs. 20.8b (FY19: Rs. 9.5b; FY18: Rs. 9.9b).

In line with updated investment policy guidelines, MIIF has remained compliant with requirement of limiting its exposure to ‘A’ rated and above exposures. During the review period, investment in corporate Sukuk witnessed a noticeable increase on a timeline basis. With major investments in corporate Sukuk and sizeable cash placements, modified duration remained within the limit of 365 days. The fund has remained compliant with maintaining 25% of net assets as cash and cash equivalents. Investor concentration levels have been reduced on a timeline basis.

For further information on this rating announcement, please contact Mr. Talha Iqbal (Ext: 213) or the undersigned (Ext: 201) at (021) 35311861-66 or email at info@vis.com.pk



Javed Callea
Advisor

Applicable rating criteria: Fund Stability Ratings (September 2018)
http://vis.com.pk/docs/Fund%20stability%20Rating092018.pdf

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