Press Release

VIS Upgrades Fund Stability Rating of Meezan Islamic Income Fund
 

Karachi, January 12, 2021: VIS Credit Rating Company Ltd. (VIS) has upgraded the Fund Stability Rating (FSR) of Meezan Islamic Income Fund (MIIF) to ‘A+ (f)’ (Single A Plus (f)) from ‘A (f)’ (Single A (f)). The previous rating action was announced on December 30, 2019.

The rating action incorporates updated ‘FUND STBILITY RATING methodology which can be found on our website or on the following link
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/FundstabilityRating.pdf.

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. Maintaining its historical trend, the fund size witnessed tremendous growth closing at 27.8b (FY19: 9.5b)

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 government guaranteed securities witnessed a noticeable increase on a timeline basis. With major investments in government guaranteed securities, corporae sukuks / Bai Muajjal placements, 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.

For further information on this rating announcement, please contact Mr. Arsal Ayub (Ext: 216) or the undersigned (Ext: 306) at (021) 35311861-66 or email at info@vis.com.pk.


Faryal Ahmed Faheem
Deputy CEO

Applicable Rating Criteria: Fund Stability Ratings (Dec 2020) https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/FundstabilityRating.pdf)

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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 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 2021 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited