Press Release

JCR-VIS Reaffirms Fund Stability Rating of Meezan Cash Fund at AA(f)

Karachi, January 01, 2013: JCR-VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of Meezan Cash Fund (MCF) at ‘AA(f)’ (Double A (f)).

Given the regulatory guidelines for money market funds to invest in at least AA rated exposures and maintain weighted average maturity of fund’s assets under 90 days, a low risk investment policy has been adopted for MCF. The fund has predominantly maintained exposures in bank balances and placements with counterparties having a minimum rating of ‘AA’, representing low exposure to credit, market and liquidity risk. Exposure in commercial paper was low at 4.5% by end-Nov’12. Maximum holding of fund in commercial paper was 14% of its net assets in the past one year; which is considered manageable in view of the strong liquidity profile of remaining exposures undertaken by the fund. Weighted average time to maturity of the fund has also been maintained within regulatory guidelines.

MCF is the largest fund in its peer group with net assets of Rs. 6.6b at end-Nov’12. Annual performance of the fund against its benchmark has been stable; however, going forward, returns are expected to witness downward pressure in view of successive cuts in SBP’s policy rate. Over time concentration level in the investor profile has come down. Top ten investors had an aggregate holding of 34.5% in outstanding units of the fund at end-Nov’12. In view of the low risk profile of the fund’s investments, its ability to meet redemption pressure in a timely manner is considered sound.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at 35311861-70 or fax to 35311872-3.



Jamal Abbas Zaidi
Deputy CEO

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 January 01, 2013 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.