Press Release

VIS Reaffirms Fund Stability Rating of Meezan Islamic Income Fund

Karachi, December 27, 2023: VIS Credit Rating Company Limited (VIS) has reaffirmed fund stability ratings of Meezan Islamic Income Fund (MIIF) at ‘A+(f)’ (Single A Plus (f)). Medium to long-term entity rating of ‘A+’ reflects moderate degree of stability in Net Asset Value; risk factors may vary with possible changes in the economy. Previous rating action was announced on January 03, 2023.

Launched in January 2007, Meezan Islamic Income Fund (MIIF) is an open-end Shariah compliant income fund, managed by Al-Meezan Investment Management Limited. The objective of the fund is to provide investors with a high and stable rate of current income consistent with long term preservation of capital in a Shariah compliant way. A secondary objective is to take advantage of opportunities to realize capital appreciation.
The fund’s Asset Under Management (AUMs) has decreased considerably to Rs. 11.5b (June’22: Rs. 18.4b) as of June’23. The fund’s compliance of minimum cash exposure of 25% in certain months remained inconsistent. However, the same remain compliant on monthly average basis during FY23. The fund has placed more than half of its investment in shariah-compliant government securities.

Moreover, the fund showed some shortfall in compliance to credit quality adherence. However, overall credit quality is maintained with significant investment placed in AAA rated securities. The modified duration of the fund remained within the specified limits. Top 10 client concentration has improved to 19.6% as of June’23 (June’22: 20.7%) due to increase in retail share of the fund.

During FY23, the fund has continued to outpace its benchmark return while slightly lagging behind its peer average. The fund is placed in the fourth 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

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