Press Release

VIS Upgrades Fund Stability Rating of Meezan Rozana Amdani Fund
 

Karachi, January 12, 2021: VIS Credit Rating Company Limited has upgraded the Fund Stability Rating (FSR) of Meezan Rozana Amdani Fund (MRAF) to ‘AA+ (f)’ (Double A Plus (f)) from ‘AA (f)’ (Double AA (f))’. Previous rating action was announced on June 30, 2020.

The rating action incorporates updated ‘FUND STABILITY 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.)

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. 45.5b (Jun’19: Rs. 16.2b) at end-Nov’20. At present, MRAF is the largest fund in terms of fund size. Corporate investors comprise the major chunk of the fund’s investor base. The fund features concentration with top 10 investors representing 67% of total AUMs as at end-Jun’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. Arsal Ayub (Ext: 216) or the undersigned (Ext: 306) at 021 35311861-66 or email at info@vis.com.pk.



Faryal Ahmad 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