Press Release

VIS Reaffirms Fund Stability Rating of Meezan Rozana Amdani Fund

Karachi, January 03, 2023: VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of Meezan Rozana Amdani Fund (MRAF) at ‘AA+ (f)’ (Double A Plus (f)). The medium to long-term rating of ‘AA+ (f)’ denotes high degree of stability in NAV. Risk is modest but may vary slightly from time to time because of changing economic conditions. Previous rating action was announced on December 27, 2021.

Meezan Rozana Amdani Fund (MRAF) is a Shariah Compliant, open-end fund that aims to provide a daily payout through investing in specified Islamic money market instruments. The daily pay-out is reinvested offering high liquidity. As at Jun’22, Assets under Management (AUMs) decreased to Rs. 71.7b (Jun’21: Rs. 73.2b).

During the year, fund has remained primarily invested in cash and bank placements with remaining exposure comprising Bai Mujjal, commercial paper, short term sukuk and other receivables. Actual asset allocation has been maintained in line with the policy limits. As per VIS benchmarks, the fund remained compliant with minimum exposure of 50% in AAA rated investments in the outgoing year. Moreover, in accordance with the Offering Documents (OD) guidelines, since its launch, the fund has complied with exposure in minimum AA rated investments. With major investments in cash placements, modified duration remained within the limit of assigned rating and OD. Liquidity profile has room for improvement given top-10 investors and unrelated corporates constitute 40.8% (Jun’21: 51.6%) and 65.6% (Jun’21: 75.2%) of total AUMs as at end-Jun’22 respectively. Fund continued to outperform its benchmark return as well as its peer average, at of Jun’22.

For further information on this rating announcement, please contact Mr. Arsal Ayub, CFA (Ext: 215) or the undersigned (Ext: 207) at 021 35311861-66 or email at info@vis.com.pk.


Sara Ahmed
Director


Applicable Rating Criteria: Fund Stability Ratings (Dec 2020)
https://docs.vis.com.pk/docs/FundstabilityRating.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 03, 2023 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.