Press Release

VIS Reaffirms Fund Stability Rating of Meezan Rozana Amdani Fund at AA(f)

Karachi, June 30, 2020: VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of Meezan Rozana Amdani Fund (MRAF) at ‘AA(f)’ (Double A (f)). Previous rating action was announced on May 16, 2019.

MRAF is an open-end Shariah compliant fund launched in 2018. The fund aims to provide a daily payout through investing in specified Islamic money market instruments while daily payout is being reinvested offering high liquidity. Net assets of the fund witnessed a multi-fold growth and stood at Rs. 51.7b (May’19: Rs. 16.1b) at end-May’20. At present, MRAF is the largest fund in terms of fund size. Retail investors comprise the major chunk of the fund’s investor base. The fund features concentration with top 10 investors representing 66% of total AUMs as at end-May’20.

Assigned rating continues to factor in low overall exposure to risk as evident from fund’s weighted average time maturity (WAM) and duration being capped at 90 days while exposures can only be taken in AA and above rated investment avenues. The fund during the period under review largely remained compliant to credit quality stipulations. Asset allocation has also been maintained in line with limits stipulated in investment policy guidelines.

For further information on this rating announcement, please contact the undersigned (Ext: 306) or Mr. Talha Iqbal at 021 35311861-70 or fax to 021-35311873.

Faryal Ahmad Faheem
Deputy CEO

Applicable rating criteria: Fund Stability Ratings (September 2018)

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