Press Release

VIS Reaffirms Fund Stability Rating of Meezan Rozana Amdani Fund

Karachi, December 27, 2023: VIS Credit Rating Company Limited (VIS) has reaffirmed Fund Stability Ratings (FSR) of Meezan Rozana Amdani Fund (MRAF) at ‘AA+(f)’ (Double A Plus (f)). Medium to long-term entity 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 January 03, 2023.

Launched in December 2018, Meezan Rozana Amdani Fund (MRAF) is an open-end Shariah compliant money market fund, managed by Al-Meezan Investment Management Limited. The objective of the fund is to meet liquidity needs of investors by providing investors a daily payout through investment in Shariah Compliant money market instruments.

The fund’s Asset Under Management (AUMs) has augmented to Rs. 95.3b (June’22: Rs. 71.7b) as of June’23. The fund’s portfolio comprised of cash, placement with bank and DFIs, bai muajjal, sukuk and commercial papers. The credit risk criteria of the fund also fall within the guidelines stipulated in our methodology for the assigned rating. Moreover, in accordance with the offering document guidelines, the fund has complied with exposure in minimum AA rated investments.

The Weighted Average Maturity (WAM) remained within capped limit of 90 days. The fund's concentration risk has notably improved over the period, as the share of unrelated corporate entities in its assets decreased to 54.8% in June 2023 (June’22: 65.6%), with the top 10 investors representing 26.6% of its AUMs as of June 2023 (June’22: 40.8%). The fund has outperformed its benchmark return and peer average; however, ranking has dropped from first to third quartile relative to peers.

For further information on this rating announcement, please contact Mr. M. Amin Hamdani (Ext: 217) or the undersigned (Ext: 201) at (021) 35311861-4 or email at info@vis.com.pk.






Javed Callea
Advisor

Applicable Rating Criteria: Fund Stability
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 December 27, 2023 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.