Karachi: VIS Credit Rating Company Limited (VIS) announced an upgrade in the Fund Stability Rating of Meezan Daily Income Plan-I (MDIP-I) to 'AA- (f)' from 'A+'. This upgrade reflects a high degree of stability in the plan's Net Asset Value, although risk factors may fluctuate due to changing economic conditions.

According to VIS Credit Rating Company Limited, the Meezan Daily Income Plan-I, launched in September 2021, is part of the Meezan Daily Income Fund scheme, a Shariah-compliant open-end income scheme. The plan aims to offer a competitive rate of return with daily payouts through investments in Shariah-compliant fixed income instruments.

The rating reflects the Fund's adherence to its asset allocation parameters for most of the year, despite occasional shortfalls. The portfolio mainly comprises cash, government-backed securities, and other investments such as sukuk, commercial papers, and placements with NBFCs and modarabas. The upgrade is attributed to improved credit quality and increased allocation to AAA-rated assets.

The Fund's weighted average time to maturity remains within specified limits, and its liquidity profile is bolstered by a significant proportion of liquid assets. The Fund's investors are predominantly retail, making up approximately 84% of the portfolio, with low concentration risk as the top ten investors represent about 9% of its assets under management. Additionally, the Fund has consistently outperformed its benchmark and peer average, ranking in the second quartile.