Karachi, May 16, 2019 (PPI-OT): VIS Credit Rating Company Limited has assigned initial fund stability rating of ‘AA (f)’ (Double A (f)) to Meezan Rozana Amdani Fund (MRAF). The AA(f) fund stability ratings denote high degree of stability in NAV. Risk is modest but may vary slightly from time to time because of changing economic conditions.
The assigned ratings indicate fund’s 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. In line with the investment policy, the fund’s exposure to credit and market risk has been maintained at low end of the risk spectrum. Duration of the fund has remained in line with policy guidelines and criteria for the assigned rating with maximum duration being reported at 18 days in Mar’2019.
MRAF is a Shariah Compliant, open-end fund launched on 28th December’2018 that aims to provide a daily payout through investing in specified Islamic money market instruments. The daily payout is being reinvested offering high liquidity. Net assets of the fund were reported at Rs. 14.3b (Dec’18: Rs. 1b) at end-Mar’2019. Retail investors comprise the major chunk of the fund’s investor base. Top 10 unit holder concentration is reported at adequate levels. Given the fund’s asset mix, ability to meet redemptions is considered strong.
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