Press Release
JCR-VIS Reaffirms Fund Stability Rating of Meezan Cash Fund
Karachi, December 29, 2017: 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 December 30, 2016.
MCF operates as a Shariah compliant open-ended fund that aims to provide investors maximum return through investing in highly liquid money market and debt securities. To limit exposure to various sources of risks, all exposures are subject to minimum rating of ‘AA’. Weighted average time to maturity (WATM) of the fund is capped at 90 days, while investment in any asset that has time to maturity in excess of six months is not allowed. Given the restrictions on WATM and asset allocation, the fund’s exposure to various sources of risk is expected to remain low. Asset allocation of the fund remained in line with the policy guidelines in FY17 while maximum WATM was reported at 26 days in Sep’2016.
Size of the fund witnessed a slight reduction to Rs. 3.46b (FY16: Rs. 3.54b) at end-FY17. Unit holder concentration in the fund has increased on a timeline basis but remains at adequate levels. Given the fund’s asset mix, ability to meet redemptions is considered strong.
For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 201) or the undersigned (Ext: 207) at 35311861-70 or fax to 35311872-3.
Jamal Abbas Zaidi
Advisor
Applicable rating criteria: Fund Stability Ratings (December 2017)