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

Javed Callea

Applicable rating criteria: Fund Stability Ratings (September 2018)

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (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.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.VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings.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 2019 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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