Press Release
VIS Reaffirms Fund Stability Rating of Meezan Sovereign Fund
Karachi, December 27, 2021: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of Meezan Sovereign Fund (MSF) at ‘AA (f)’ (Double A (f)). The previous rating action was announced on January 12, 2021.
Meezan Sovereign Fund (MSF) is an open-ended Shariah compliant sovereign fund designed to offer competitive returns to investors through deploying resources primarily in government backed Shariah compliant debt securities. As at end-October’21, MSF’s net assets have increased to Rs. 10.5b (FY21: Rs. 9.9b, FY20: Rs. 7.5b). Fund’s duration is capped at 180 days while exposures can only be taken in AA- and above rated investment avenues.
Ratings incorporates exposures currently remaining compliant with credit quality stipulations. The fund complied with the credit quality requisites for the assigned ratings with sizeable investments in AAA rated instruments. Maximum duration during the review period was reported at 161 days in Nov’20 which is below the limit of 180 days as per investment policy. Liquidity also remained strong with investments majorly in liquid Government Securities which also provided comfort against higher market risk exposure. The fund was in the first quartile in fund performance, outperforming its benchmark and peer average in FY21.
For further information on this rating announcement, please contact Ms. Asfia Aziz or the undersigned (Ext: 306) at (021) 35311861-66 or email at info@vis.com.pk.
Faryal Ahmed Faheem
Deputy CEO
Applicable Rating Criteria: Fund Stability Ratings (Dec 2020)
https://docs.vis.com.pk/docs/FundstabilityRating.pdf