Press Release

JCR-VIS Upgrades Fund Stability Rating of Al-Ameen Islamic Income Fund to BBB+(f)

Karachi, August 12, 2014: JCR-VIS Credit Rating Company Limited (JCR-VIS) has upgraded the Fund Stability Rating (FSR) of Al-Ameen Islamic Income Fund (AIIF) to ‘BBB+(f)’ (Triple B Plus (f)) from ‘BBB(f)’ (Triple B (f)).

Previously known as United Islamic Income Fund, the fund has been renamed in the outgoing fiscal year in-line with the re-branding of all Shariah compliant funds under the umbrella of Al-Ameen Funds. The rating action takes into account improvement in portfolio quality of the fund over the out-going year with fresh liquidity directed towards entities having sound risk profile while the proportion of high risk instruments has marginalized.

During FY14, offering document of AIIF has been revised, whereby the previously set limit of ‘BBB’ for counterparty exposures has been eliminated. The revised offering document allows the fund manager additional flexibility in asset allocation, albeit at the same time allowing the fund to assume additional credit risk. As such, the management does not plan to invest in sub-investment grade securities. Fresh exposures assumed by the fund will be tracked on an on-going basis, for impact on risk profile of the fund. As an Islamic income fund, AIIF’s exposure to price risk originating from changes in benchmark rate is expected to remain manageable.

In tandem with increase in fund size, investor concentration in the fund has trended downwards; albeit the same still remains on the higher side. Improving risk profile of the fund’s assets is expected to have improved the fund’s ability to meet redemptions in a timely manner.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at 021-35311861-70 or fax to 021-35311872-3.

Jamal Abbas Zaidi
Deputy CEO

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited 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.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.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 2014 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited