Press Release

JCR-VIS reaffirms Fund Stability Rating of Askari Islamic Income Fund at A+(f)

Karachi, December 30, 2016: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed Fund Stability Rating of Askari Islamic Income Fund (AIIF) at ‘A+(f)’ (Single A Plus (f)). The previous rating action was announced on December 31, 2015.

As per its revised offering document, AIIF is required to maintain at least 25% of net assets in Islamic Banks (or Islamic Banking windows) for the purpose of ensuring adequate liquidity, while other investment avenues of the fund include sovereign fixed income securities, spread transactions, secured Sukuks and certificates of Mudarabah and Musharikah. Assets of the fund were primarily deployed in Ijarah Sukuks, corporate sukuks and liquid avenues such as cash or bank deposits in FY16. For the period under review, the fund has been largely in compliance of our internal credit quality criteria; however, the same is expected to ensure consistency in compliance going forward.

Net assets of the fund decreased to Rs. 487m at end-FY16 (FY15: Rs. 651m) primarily on account of redemptions by unrelated corporations. Weighted Average Maturity (WAM) of net assets is capped at 4 years, excluding government securities. Actual WAM of the net assets remained below 2 years throughout FY16. Sensitivity to interest rate risk was considered lower given duration of 0.28 years at end-FY16.

For further information on this rating announcement, please contact the undersigned (Ext: 207) or Mr. Javed Callea (Ext: 201) at 021-35311861-70 or fax to 021-35311873.

Jamal Abbas Zaidi

Applicable rating criterion: 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