Press Release
VIS Reaffirms Fund Stability Rating of Meezan Sovereign Fund
Karachi, December 16, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of Meezan Sovereign Fund at ‘AA(f)’ (Double A (f)). Medium to long-term fund rating of ‘AA(f)’ reflects a 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 February 06, 2025.
Launched in February 2010, Meezan Sovereign Fund (MSF) is an open-ended, Shariah-compliant sovereign fund managed by Al-Meezan Investment Management Limited, with the primary objective of maximizing capital preservation while delivering a reasonable return. The rating reflects the Fund’s adherence to its defined asset allocation strategy, with investments predominantly in government-backed securities supplemented by cash balances. Credit quality remained strong, concentrated in AAA-rated instruments with a minor exposure to A+ rated securities. The Fund consistently complied with duration limits, maintaining its average modified duration within the prescribed threshold. Liquidity stayed sound due to the high proportion of liquid assets, while the investor base remained largely retail with low concentration risk. Following the benchmark revision, the Fund has modestly trailed its benchmark on a month-on-month basis during the latter half of FY25, while its relative performance placed it in the fourth quartile among peers.
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/Methodologies-2025/FSR-Methodology-Jan-2025.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf