Press Release

VIS Reaffirms Fund Stability Rating of Meezan Rozana Amdani Fund

Karachi, January 06, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed Fund Stability Ratings (FSR) of Meezan Rozana Amdani Fund (MRAF) at ‘AA+(f)’ (Double A Plus (f)). Medium to long-term fund rating of ‘AA+’ reflects high degree of stability in Net Asset Value; Risk is modest but may vary slightly from time to time because of changing economic conditions. Previous rating action was announced on December 27, 2023.

Launched in December 2018, Meezan Rozana Amdani Fund (MRAF) is an open-end Shariah compliant money market fund, managed by Al-Meezan Investment Management Limited. The objective of the fund is to meet liquidity needs of investors by providing investors a daily payout through investment in Shariah Compliant money market instruments.

Assigned rating reflects the Fund’s asset allocation strategy, with instances of non-compliance noted regarding the exposure limit for placements in Banks and DFIs during certain months. However, the Fund complied with the remaining parameters outlined in the offering document. The Fund’s portfolio primarily consisted of cash followed by investments in placements, GOP Guaranteed securities, and Sukuk. Credit quality of the fund remained aligned with the offering document, maintaining investments predominantly in AA and above rated securities, however allocation in higher rated AAA securities has decreased in FY24.

The Weighted Average Maturity (WAM) remained within capped limit of 90 days. Liquidity profile of the Fund is considered sound given the sizeable quantum of liquid assets. The corporate investors accounted for around half of the Fund’s portfolio while the retail investors represented the remaining portion of the investments. Additionally, client concentration risk is considered low. In terms of the Fund’s performance, the Fund is placed in the third quartile relative to its peers.

For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.


Applicable Rating Criteria: Fund Stability Ratings
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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