Press Release

JCR-VIS Reaffirms Fund Stability Rating of Meezan Cash Fund

Karachi, January 12, 2016: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Fund Stability Rating (FSR) of Meezan Cash Fund (MCF) at ‘AA(f)’ (Double A (f)). The previous rating action was announced on October 28, 2014.

Asset allocation of the fund has been in line with limits placed in the constitutive documents. The fund ensures weighted average time to maturity (WATM) less than 90 days and credit portfolio of AA and above. Based on month-end averages, the fund has placed three-fifths of net assets as cash to maintain adequate liquidity levels. The fund has taken exposure in GoP Ijarah Sukuk where pricing is largely impacted by market dynamics of demand and supply rather than changes in the discount rate. As signified by fund duration, sensitivity to changes in discount rate remains minimal. Growth in assets under management has been driven by institutional investors, un-favourably affecting investor concentration. Given the asset allocation, fund’s returns are partially dependent upon deposit rates offered by banks. Moreover, volatility in prices of GoP Ijarah Sukuk, stemming from demand and supply factors, may continue to have some impact on returns.
For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or the undersigned (Ext: 516) at 35311861-70 or fax to 35311872-3.


Jamal Abbas Zaidi
Advisor

Applicable rating criteria: Fund Stability Ratings (February 2012)

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 12, 2016 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.