Press Release

VIS Reaffirms Fund Stability Rating of Meezan Cash Fund

Karachi, January 06, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Ratings of Meezan Cash Fund (MCF) at ‘AA+(f)’ (Double A Plus (f)). Medium to long-term fund rating of ‘AA+’ reflects high degree of stability in Net Asset Value. Risk factors are modest but may vary slightly from time to time because of changing economic conditions. Previous rating action was announced on December 29, 2023.

Launched in June 2009, Meezan Cash Fund (MCF) is an open-end Shariah compliant money market scheme, managed by Al-Meezan Investment Management Limited. The objective of the fund is to seek maximum possible preservation of capital and a reasonable rate of return via investing primarily in liquid Shariah compliant money market and debt securities.

The assigned rating considers the Fund’s asset allocation strategy, which aligns with its investment objectives and the parameters outlined in the offering document. The majority of investments were allocated to cash, followed by placements with banks and DFIs, Sukuk, Commercial Papers, and other investments. The assigned rating also reflects the Fund’s credit quality, with investments largely in AAA rated securities, while the remaining exposures were in AA and AA+ rated securities, all within the minimum rating threshold defined in the offering document.

The Fund’s weighted average time to maturity (WAM) has remained below the defined benchmark as prescribed in the offering document. The retail investors held the majority of the Fund’s investment. Additionally, client concentration risk of the Fund is considered low. In terms of the Fund’s performance, the Fund’s annualized return outperformed its benchmark while falling short of peer average, placing the Fund in the fourth quartile.

For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.


Applicable Rating Criteria: Fund Stability Ratings
https://docs.vis.com.pk/docs/FundstabilityRating.pdf

VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.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 January 06, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.