Press Release
JCR-VIS assigns Fund Stability Rating of A(f) to Meezan Islamic Income Fund
Karachi, June 24, 2008: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned Fund Stability Rating of ‘A(f)’ (Single A (f)) to Meezan Islamic Income Fund (MIIF). Launched in January 2007, the fund is managed by Al-Meezan Investment Management Limited. The aim of the fund is to provide investors with a stable stream of income and long term capital preservation. MIIF has grown to Rs. 5.7b by the end of May 2008.
The policy developed for MIIF mandates that minimum rating requirement for all credit exposures is ‘A’ except in the case of COIs issued by NBFCs where the minimum entity rating required is ‘A-’. Exposure to ready-future spread transactions will not exceed 15% of net assets so that volatility associated with their returns is limited. So far, the fund has maintained a large part of its assets in short term placements with various financial institutions although the fund has also developed a sizable portfolio of sukuk certificates.
With a year into operations, the fund has been able to attract retail investors, which held 18% of the outstanding units by the end of March 2008. During FY07, the annualized return of the fund was over 9%.
For further information on this rating announcement, please contact the undersigned (Ext: 501) or Ms. Sobia Maqbool (Ext: 506) at 5311861-70 or fax to 5311872-3.
Safdar Kazi
Director