Press Release

JCR-VIS Harmonizes Fund Stability Rating of Meezan Sovereign Fund

Karachi, March 29, 2012: Following the revision in fund stability rating methodology, JCR-VIS Credit Rating Company Limited has harmonized the fund stability rating (FSR) of Meezan Sovereign Fund (MSF) from ‘AA+(f)’ (Double A Plus(f)) to ‘AA(f)’ (Double A (f)).

MSF is structured as a government securities income fund. As per its investment policy, at least 70% of net assets have to be invested in government securities. Moreover, remaining exposure will primarily be maintained as cash and bank balances with banks having rating in the ‘AA’ band. Thus, overall exposure of the fund to credit risk is expected to be limited. Target duration of the fund, as outlined in the investment policy is 90 days; though, there may be instances, where duration of the fund may exceed 90 days as there are no GOP Ijarah sukuks with maturity profile lower than six months and profit rate of GoP Ijarah Sukuks is reset after every six months. JCR-VIS will continue to monitor the frequency of such instances for impact on risk profile of the fund.

Net assets of the fund have grown significantly since inception increasing to Rs. 19.7b by end-February 2012. The investor profile features concentration; though, the ability of the fund to meet redemptions in a timely manner is backed by strong liquidity profile of investments. The fund may nevertheless benefit from a diversified investor base.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 506) at 021-35311861-70 or fax to 021-35311872-3.




Jamal Abbas Zaidi
Deputy CEO

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 2012 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .