Karachi, January 13, 2021 (PPI-OT): VIS Credit Rating Company Ltd. (VIS) has upgraded the Fund Stability Rating (FSR) of Meezan Islamic Income Fund (MIIF) to ‘A+ (f)’ (Single A Plus (f)) from ‘A (f)’ (Single A (f)). The previous rating action was announced on December 30, 2019. The rating action incorporates updated ‘FUND STBILITY RATING methodology which can be found on our website or on the following link https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/FundstabilityRating.pdf.
MIIF is a Shariah compliant open end fund which aims to provide investors comparable returns by investing in diversified pool of debt instruments, bank deposits and other approved investment avenues subject to the necessary condition of capital preservation. Maintaining its historical trend, the fund size witnessed tremendous growth closing at 27.8b (FY19: 9.5b)
In line with updated investment policy guidelines, MIIF has remained compliant with requirement of limiting its exposure to ‘A’ rated and above exposures. During the review period, investment in government guaranteed securities witnessed a noticeable increase on a timeline basis. With major investments in government guaranteed securities, corporate sukuks / Bai Muajjal placements, and sizeable cash placements, modified duration remained within the limit of 365 days. The fund has remained compliant with maintaining 25% of net assets as cash and cash equivalents.
For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
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