Press Release

JCR-VIS Reaffirms Fund Stability Rating of Meezan Cash Fund

Karachi, October 28, 2014: 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)). The previous rating action was announced on August 15, 2013.

Asset allocation of the fund has remained in line with the regulatory guidelines which stipulate minimum issue/issuer rating of AA and maximum Weighted Average Maturity (WAM) of 90 days. Based on month end averages, bank balances represented almost three-fourths of assets during FY14. While short term Shariah compliant instruments have yet to be introduced by the government, reducing time to maturities of previously issued long term instruments has allowed the fund to build exposure in GoP Ijarah Sukuk as well over the last two years. Given the maturity profile, the fund’s sensitivity to changes in market benchmark rates is expected to remain minimal. Unit-holder concentration levels compare favorably to other funds, with sizeable investment from retail investors.

In line with trend in market rates, return of the fund has declined over the year. Given the asset allocation, fund’s returns are to some extent contingent upon deposit rates offered by banks. Moreover, volatility in prices of GoP Ijarah Sukuk, stemming from demand and supply factors, may continue to have some impact on returns.

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

Applicable rating criteria: Fund Stability Ratings (February 2012)

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 2014 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .