Press Release

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

Karachi, December 28, 2018: 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 29, 2017.

MCF is an open-end Shariah compliant money market scheme which aims to provide investors maximum returns through investing in specified money market and debt securities. The fund further offers maximum preservation of principal investment while maintaining high level of liquidity. In order to achieve the same, the fund’s weighted average maturity (WAM) and duration are capped at 90 days while exposures can only be taken in AA and above rated investment avenues. Net assets of the fund increased to Rs. 9,920m (FY17: Rs. 3,350m) at end-June’2018.

In line with the investment policy, the fund’s exposure to credit and market risk has been maintained at low end of the risk spectrum. The reaffirmation of rating incorporates exposures remaining compliant with credit quality stipulations. Maximum duration during FY18 was reported at 18 days during Feb’2018 indicating low exposure to market risk. Concentration of top-10 investors increased on a timeline basis. However, given the liquidity profile of assets, ability to meet redemptions is considered sound.

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 (September 2018)
http://jcrvis.com.pk/docs/Fund%20stability%20Rating092018.pdf

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 December 28, 2018 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.