Press Release

JCR-VIS Reaffirms Fund Stability Rating of Al-Ameen Islamic Sovereign Fund

Karachi, December 30, 2016:JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) has reaffirmed the Fund Stability Rating of Al-Ameen Islamic Sovereign Fund (AISF) at ‘AA-(f)’ (Double A Minus (f)). The previous rating action was announced on January 06, 2016.

Launched in November’2010, AISF operates as an open end income fund. As per the offering document, the fund is required to maintain a minimum of 70% exposure in Shariah complaint sovereign instruments while a floor of 10% is also applicable in relationto bank deposits. Fund’s ability to assume credit risk is on the lower side due to cap on minimum rating of instruments at ‘AA-’. On average basis, actual asset allocation of the fund primarily comprised investment in government securities and bank deposits with at-least ‘AA’ rated Banks.

Weighted Average Maturity (WAM) of the fund has remained in line with investment policy guidelines. However, duration of the fund has exceeded JCR-VIS’s internal criteria for the assigned rating on a consistent basis since February’2016. As per management, this is on account of investment in fixed rate GoP Ijarah Sukuk to comply with requirement of minimum 70% exposure in sovereign instruments. Investor concentration in the fund has reduced on a timeline basis. Given that most of the fund is invested in liquid avenues, the fund’s ability to meet redemptions in a timely manner remains sound.

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)

Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. JCR-VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2016 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited