Karachi: VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating of Meezan Cash Fund (MCF) at 'AA+(f)' (Double A Plus (f)). This rating reflects a high degree of stability in the Net Asset Value of the fund.

According to VIS Credit Rating Company Limited, the reaffirmation indicates that the risk factors associated with the fund remain modest, although they may vary slightly due to changing economic conditions. The previous rating action for MCF was announced on December 29, 2023.

Launched in June 2009, Meezan Cash Fund is an open-end Shariah compliant money market scheme managed by Al-Meezan Investment Management Limited. The fund aims to preserve capital while seeking a reasonable rate of return by investing primarily in liquid Shariah compliant money market and debt securities.

The rating takes into account the fund's asset allocation strategy, which is aligned with its investment objectives and the guidelines in its offering document. Most of the fund's investments are allocated to cash, with additional placements in banks, Development Financial Institutions (DFIs), Sukuk, and commercial papers. The high credit quality of the fund is evidenced by its investments mainly in AAA rated securities, with remaining exposures in AA and AA+ rated securities, all adhering to the rating thresholds defined in the offering document.

The fund's weighted average time to maturity remains below the benchmark set in the offering document. Retail investors hold the majority of the fund's investments, and the client concentration risk is considered low. While the fund's annualized return has outperformed its benchmark, it has not matched the peer average, placing it in the fourth quartile in terms of performance.