Karachi, January 13, 2021 (PPI-OT): VIS Credit Rating Company Limited (VIS) has upgraded the Fund Stability Rating (FSR) of Meezan Sovereign Fund (MSF) to ‘AA (f)’ (Double A (f)) from ‘AA-(f)’ (Double AA Minus (f)). The previous rating action was announced on December 30, 2019. The rating action incorporates updated ‘FUND STABILITY 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.
MSF is an open ended Shariah compliant sovereign fund designed to offer competitive returns to investors through deploying resources primarily in government backed Shariah compliant debt securities. Fund’s duration is capped at 180 days while exposures can only be taken in AA- and above rated investment avenues. As at end-November 2020, MSF’s net assets stood at Rs. 8.7b (FY20: Rs. 9.7b; FY19: Rs. 5.7b).
The upgrade also incorporates exposures currently remaining compliant with credit quality stipulations. Given that minimum 70% of net assets are required to be invested in sovereign exposures, the fund has majorly complied with the credit quality requisites for the assigned ratings. Maximum duration during the review period was reported at 88 days in May’20 which is below the limit of 180 days as per policy and criteria for AA – rated fund.
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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