Karachi: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating of Meezan Rozana Amdani Fund (MRAF) at 'AA+(f)', indicating a high degree of stability in the fund's Net Asset Value. The medium to long-term rating reflects modest risk levels that could vary slightly due to changing economic conditions. The previous rating action was announced in December 2023.

According to VIS Credit Rating Company Limited, the Meezan Rozana Amdani Fund, launched in December 2018, is an open-end Shariah-compliant money market fund managed by Al-Meezan Investment Management Limited. The fund aims to meet the liquidity needs of its investors by providing daily payouts through investment in Shariah-compliant money market instruments.

The rating reflects the fund's asset allocation strategy, though non-compliance was noted in certain months regarding exposure limits for bank and DFI placements. The fund complied with other parameters outlined in its offering document. Its portfolio primarily includes cash, placements, GOP guaranteed securities, and Sukuk. While the fund's credit quality aligns with its offering document, maintaining predominantly AA and above-rated securities, there has been a decrease in the allocation of higher-rated AAA securities in FY24.

The Weighted Average Maturity of the fund remained within the capped limit of 90 days, and its liquidity profile is considered sound due to the significant quantum of liquid assets. Corporate investors account for about half of the fund's portfolio, with retail investors representing the remainder, resulting in low client concentration risk. The fund is positioned in the third quartile relative to its peers in terms of performance.