Karachi, January 03, 2023 (PPI-OT):VIS Credit Rating Company Ltd. (VIS) has upgraded the Fund Stability Rating (FSR) of Meezan Cash Fund (MCF) to ‘AA+(f)’ (Double A Plus (f)). The medium to long-term rating of ‘AA+(f)’ denotes high degree of stability in NAV. Risk is modest but may vary slightly from time to time because of changing economic conditions. The previous rating action was announced on December 27, 2021.

Meezan Cash Fund (MCF) is an open-end Shariah compliant money market scheme. As per its mandate, the fund aims to provide its investors with maximum returns through deploying assets in specified money market placements and debt securities. Furthermore, MCF offers maximum possible preservation of principal investment while maintaining high level of liquidity. As at Oct’22, Assets under Management (AUM) increased to Rs. 19.5b (Jun’22: 13.5b; Jun’21: Rs. 13.6b).

As per the Investment Policy Statement (IPS), WAM of the fund is capped at 180 days, wherein exposures are limited to a minimum of ‘AA’ and above rated investment avenues. Asset allocation and credit quality of the fund remained in line with limits stipulated in investment policy guidelines. The rating revision takes into account improvement in credit quality, whereby, on average basis, the fund managed to park 80.0% of its investments in ‘AAA’ rated issue/issuer. Liquidity of the fund also remains strong with a larger proportion vested cash placements. However, while fund has outperformed its benchmark return, relative to peers, fund performance has remained below peer average. The fund was in the fourth quartile as of June’ 22.

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/