Press Release

JCR-VIS Reaffirms Fund Stability Rating of PICIC Islamic Income Fund

Karachi, December 28, 2015: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Fund Stability Rating (FSR) of PICIC Islamic Income Fund (PIIF) at ‘A(f)’ (Single A (f)). The previous rating action was announced on December 22, 2014.

As per the investment policy, the fund is only allowed to invest in issues/issuers rated ‘A’ (Single A) or above, with portfolio duration targeted at 2 years (preferably not more than 365 days). Asset allocation has remained aligned with the investment policy. During FY15, average month-end allocation to bank placement was more than 80% while exposure to GoP Ijarah sukuk was recorded at less than 10%; the same increased to a quarter of fund’s asset at end-1QFY16. Some exposure has also been built on corporate sukuk.

Weighted average maturity of fund’s asset remained within maximum policy limits. The fund’s exposure to interest rate risk is expected to remain manageable as return on all long term Islamic instruments are re-priced to market benchmark rates periodically. Investor profile has weakened on a timeline basis. Given the liquidity profile of the assets, the fund is expected to meet redemptions in a timely manner.

For further information on this rating announcement, please contact the undersigned (Ext: 516) or Mr. Javed Callea (Ext: 501) at 021-35311861-71 or fax to 021-35311872-3.

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 2015 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