Press Release

VIS Reaffirms Fund Stability Rating of Meezan Sovereign Fund at AA-(f)

Karachi, December 30, 2019: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of Meezan Sovereign Fund (MSF) at ‘AA-(f)’ (Double A Minus (f)). The previous rating action was announced on December 28, 2018.

MSF is an open ended Shariah compliant sovereign fund designed to offer competitive returns to investors through deploying resources primarily in government backed Shariah compliant debt securities. Fund’s duration is capped at 180 days while exposures can only be taken in A+ and above rated investment avenues. As at end-November 2019, MSF’s net assets stood at Rs. 3.8b (FY19: Rs. 5.7b; FY18: Rs. 2.1b).

Reaffirmation of rating incorporates exposures remaining compliant with credit quality stipulations. Given that minimum 70% of net assets are required to be invested in sovereign exposures, the fund has largely remained non-compliant with respect to the said limit due to non-availability of sovereign instruments. Maximum duration during the review period was reported at 149 days in July’18 which is below the limit of 180 days as per policy and criteria for AA- rated fund. Retail proportion of total fund base has increased while investors’ concentration has decreased which provides support to overall liquidity profile.

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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