Press Release

VIS Reaffirms Fund Stability Rating of Meezan Islamic Income Fund

Karachi, January 03, 2023: VIS Credit Rating Company Ltd. (VIS) has reaffirmed the Fund Stability Rating (FSR) of Meezan Islamic Income Fund (MIIF) at ‘A+(f)’ (Single A Plus (f)). The medium to long-term rating of ‘A+(f)’ denotes moderate degree of stability on NAV. Risk factors may vary with possible changes in the economy. The previous rating action was announced on December 27, 2021.
Meezan Islamic Income Fund (MIIF) is a Shariah compliant open-end fund which aims to provide its investors with comparable returns by investing in a diversified pool of debt instruments, bank deposits and other approved investment avenues subject to the necessary condition of capital preservation. As at Oct’22, Assets under Management (AUMs) of the fund witnessed a decrease and were reported at Rs. 17.8b (Jun22: 18.4b; Jun’ 21: Rs. 26.8b).
During FY22, the fund’s asset allocation and credit quality was not in compliance with the standards specified in the Offering Document (OD). The fund has also fails to comply with the stipulations of the assigned ratings by investing in instruments rated below ‘A’ rating.
Modified duration remained within the limit of 270 days as per the assigned rating. Retail share of total fund base has improved to 80.1% (Jun’21: 78.0%) as of Jun’22 whereas share of associates has reduced to nil. Top 10 investor’s concentration was reported at 20.7% (Jun’21: 18.9%) as of Jun’22.
As of Jun’22 the fund annualized return was lower than peer average. However, relating ranking of the fund remained the same. The fund ranked at 6 out of 21. Maintenance of performance metrics will be important for rating, going forward.

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 2023 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .