Karachi, December 30, 2016: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Fund Stability Rating (FSR) of Al-Ameen Islamic Aggressive Income Fund (AIAIF) at ‘BBB+(f)’ (Triple B Plus (f)). The previous rating action was announced on January 06, 2016.
The actual asset allocation of the fund remained in compliance with the stipulated limits, with sizeable exposure in bank deposits and Sukuk on average basis. Majority of the exposure has been built in ‘A’ and above rated investment avenues. The rating are constrained in view of the fund’s ability, under its investment policy, to assume risk is on the higher side, with no minimum threshold defined for credit risk in addition to which there is no restriction on time to maturity of a single security.
Investment policy has capped Weighted Average Maturity (WAM) of the fund at 5 years. WAM has remained in line with the specific limit in the outgoing year. Duration of the fund has witnessed a declining trend and stood at 0.25 years at end-October’2016, indicating low exposure to market risk. Investor concentration in the fund has remained within manageable levels. Ability of the fund to meet redemptions in a timely manner is adequate given the asset mix of the fund.
Size of the fund has increased to Rs. 1.3b (FY16: Rs. 643m; FY15: Rs. 829m) 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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