Karachi, January 19, 2023 (PPI-OT):VIS Credit Rating Company Limited has assigned initial Fund Stability Rating (FSR) of Meezan Daily Income Fund (MDIF) at ‘A+(f)’ (Single A Plus (f)). The medium to long-term rating of ‘A+(f)’ denotes moderate degree of stability in NAV. Risk factors may vary with possible changes in the economy.
Meezan Daily Income Plan-I (MDIP-I) is an Asset Allocation Plan under the Meezan Daily Income Fund (MDIF) scheme which is a Shariah compliant open end Income Scheme. The objective of the plan is to provide investors with a competitive rate of return, together with daily payout, through investment in Shariah Compliant Fixed Income Instruments. As of Oct’22, Assets under Management (AUMs) of the plan were reported at Rs. 57.0b (Jun’22: Rs. 30.4b).
As per the plan’s Offering Document (OD), minimum investment exposure of 25% of the AUMs have to be parked in cash balances. The plan has complied with the stipulations since inception. In order to cater to its mandate, the fund is required to invest in instruments with minimum credit rating of ‘A+’ or higher. The fund complied with the requirements of the OD during the outgoing year. Nevertheless, deviation was noted in fund compliance with requirement to maintain maximum exposure of 15% in A+ rated investments on MoM basis.
Since inception, due to sizeable investments in cash placements, the fund’s modified duration has remained within the stipulations of 2 years. Retail investors comprises a significant share of 85.3% as of Jun’22 (Dec’21: 63.0%). Hence, top 10 investors contribution to the total AUMs was also reported on the lower side at 15.5% as of Jun’22 (Dec’21: 39.1%). Since major investment exposure comprises cash and bank balances, liquidity profile of the plan is considered manageable and the ability to meet redemptions is considered adequate. The fund returns have noticeably outperformed the benchmark rates. As of Oct’22 the fund return was higher than peer average as well.
For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: bilal@jcrvis.com.pk
Website: https://www.vis.com.pk/