Karachi, December 29, 2016: JCR-VIS Credit Rating Company Limited has reaffirmed Fund Stability Rating (FSR) of Al-Ameen Islamic Cash Fund (AICF) at ‘AA(f)’ (Double A (f)). The previous rating action was announced on January 06, 2016.
Launched in September’2012, AICF operates as an open end Shariah compliant money market fund. Operational investment policy and asset allocation of AICF reflect low exposure to credit and market risk. Funds were primarily invested in the form of cash and placements with funds deployed in ‘AA’ and ‘AA+’ rated Banks. Weighted Average Maturity (WAM) of the fund is capped at 90 days with the same remaining below the stipulated ceiling during the review period. Resultantly, exposure to market risk is on the lower side. Unit holder concentration remained on the higher side with sizeable investment by related parties. Ability of the fund to meet redemptions in a timely manner is adequate, given the strong liquidity profile of investments held by the fund.
Size of the fund witnessed significant volatility during FY16, with net assets falling to Rs. 1.9b (FY15: Rs. 5.3b) at end-June’16. Fund size further reduced to Rs. 1.5b at end-October’2016.
For further information on this rating announcement, please contact the undersigned (Ext: 207) or Mr. Javed Callea (Ext: 201) at 35311861-70 or fax to 35311872.
Jamal Abbas Zaidi
Applicable Rating Criteria: Fund Stability Ratings (February 2012)
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