Press Release

VIS Reaffirms Fund Stability Rating of Meezan Sovereign Fund

Karachi, February 06, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed Fund Stability Rating (FSR) of Meezan Sovereign Fund (MSF) at ‘AA(f)’ (Double A (f)). Medium to long-term fund rating of ‘AA’ reflects high degree of stability in Net Asset Value; Risk is modest but may vary slightly from time to time because of changing economic conditions. Previous rating action was announced on December 27, 2023.

Launched in Feb 2010, Meezan Sovereign Fund (MSF) is an open ended Shariah compliant sovereign fund, managed by Al-Meezan Investment Management Limited. The objective of the scheme is to seek maximum possible preservation of capital and a reasonable rate of return.

Assigned rating incorporates the Fund’s asset allocation, which largely aligned with the guidelines specified in the offering document, despite falling short of certain thresholds in specific months. Investments were predominantly in GOP Guaranteed securities, followed by allocations to cash deposits. The rating also reflects the Fund’s credit quality, with credit exposures primarily in AAA rated investments and government securities, and minimal exposure to A+ rated instruments, in line with the prescribed threshold defined in the offering document.

The Fund’s weighted average time to maturity (WAM) has remained within the capped limit as stated in the offering document. Liquidity profile of the Fund is considered sound. The Fund’s portfolio is primarily held by retail investors. Meanwhile, the Fund’s client concentration risk remains low. In terms of the Fund’s performance. The Fund is placed in the first quartile relative to its peers.

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 February 06, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.