Press Release

JCR-VIS Reaffirms Fund Stability Rating of Meezan Cash Fund

Karachi, August 15, 2013: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Fund Stability Rating (FSR) of Meezan Cash Fund (MCF) at ‘AA(f)’ (Double A (f)).

In line with its categorization, MCF has a low risk appetite. Exposures assumed by the fund have remained aligned with the investment policy. During its initial years, the fund’s assets were mostly held in deposits or placements with financial institutions. Over time, the fund has also tapped into highly rated commercial papers and government guaranteed exposures as avenues for deployment.

Credit quality of the fund is considered sound which is supplemented by the fund’s low sensitivity to interest rate movements, reflected by weighted average time to maturity of 52 days at end-June 2013. Given that the fund has a large retail investor base, concentration levels compare favorably to other funds.

In comparison with benchmark, which is average return on 6-month Islamic bank deposits, the fund has performed better since inception. In line with the decline in discount rate, return of the fund has followed a downward trajectory. Given the low exposure to various sources of risks, the fund is expected to exhibit stability in returns, barring any changes in the benchmark rate itself.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at 35311861-70 or fax to 35311872-3.



Jamal Abbas Zaidi
Deputy CEO

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