Press Release

JCR-VIS Reaffirms Fund Stability Rating of AKD Aggressive Income Fund at BBB(f)

Karachi, December 31, 2015: JCR-VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of AKD Aggressive Income Fund (AKDAIF) at ‘BBB(f)’ (Triple B(f)). The previous rating action was announced on September 26, 2014.

In line with its categorization, the fund has flexibility in managing its exposure to various sources of risks, with no thresholds defined for assuming credit risk in addition to which there is no restriction on duration. On average, around two-third of the exposure of the fund was in government securities during FY15 with remaining investment in margin trading system, bank deposits and TFC/Sukuk. Exposure to government securities has increased further at 85.72% of total assets at end-November’2015. Given the higher exposure to government securities and no un-provided non-performing TFC/Sukuk, exposure to credit risk has declined on a timeline basis.

With significant exposure built in PIBs to benefit from declining interest rate environment, duration of the fund was reported at its highest at end-November’2014 at 3.33 years. Duration has declined subsequently and was reported at 2.2 years at end-September’2015. Investor concentration levels in the fund continue to be on the higher side on account of which the fund is exposed to a degree of liquidity risk. Ability to meet redemptions is supported by liquidity profile of assets.

For further information on this rating announcement, please contact the undersigned (Ext: 516) or Mr. Javed Callea (Ext: 501) at 35311861-70 (10 lines) or fax to 35311872-3.



Jamal Abbas Zaidi
Advisor


Applicable Rating Criteria: Fund Stability Ratings (February 2012)

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 December 31, 2015 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.