Press Release

VIS Upgrades Fund Stability Rating of Meezan Daily Income Plan-I

Karachi, January 06, 2025: VIS Credit Rating Company Limited (VIS) has upgraded the Fund Stability Ratings of Meezan Daily Income Plan-I (MDIP-I) to ‘AA- (f)’ (Double A Minus (f)) from ‘A+’ (Single A Plus). Medium to long-term Plan rating of ‘AA-’ reflects high degree of stability in Net Asset Value. Risk factors are 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 September 2021, Meezan Daily Income Plan-I (MDIP-I) is an Asset Allocation Plan under the Meezan Daily Income Fund (MDIF) scheme which is a Shariah compliant open end Income Scheme. The objective of the plan is to provide investors with a competitive rate of return, together with daily payout, through investment in Shariah Compliant Fixed Income Instruments.

Assigned rating takes into account the Fund’s asset allocation, which has generally adhered to the parameters outlined in the offering document for most of the year, although it has fallen short of its threshold in certain months. The Fund's portfolio is primarily composed of cash, accounting for around half of the portfolio, followed by exposures in government backed securities, with remaining investments distributed among sukuk, commercial papers, placements with NBFCs and modarabas. Rating upgrade is on account of an improvement in credit quality, with an increased allocation to AAA-rated assets while remaining investments are placed in A+ and above rated instruments.

The Fund’s weighted average time to maturity (WAM) has remained within the limits specified in the offering document. Liquidity profile of the Fund is considered strong, supported by the substantial portion of liquid assets it holds. The Fund’s clientele primarily composed of retail investors, who account for ~84% of the Fund’s portfolio, Additionally, concentration risk is considered low, as the top ten investors represent ~9% of its AUM. In terms of the Fund’s performance, the Fund has outperformed both its benchmark and peer average, and is positioned in the second quartile.

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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