Press Release
JCR-VIS Reaffirms Fund Stability Rating of ABL Income Fund
Karachi, October 16, 2014: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Fund Stability Rating of ABL Income Fund (ABL IF) at ‘A+(f)’ (Single A Plus (f)).
As an income fund, ABL IF can invest in various types of fixed income instruments, including bank deposits, government paper, corporate debt instruments, in addition to which, 5% of assets may also be deployed in spread transactions/margin trading system. Over the last year, the fund had extended its duration beyond 365 days, increasing the exposure to interest rate risk. The management has however brought duration down in recent months and reiterated commitment to maintain it under 365 days. JCR-VIS will continue to monitor the same.
Actual portfolio mix has experienced variation over the year. While average exposure to government paper was recorded at 50% in FY14, its level varied from under one-fourth of assets to over three-fourth, at month-ends. Exposure to corporate debt instruments has averaged about 10% of assets. Quality of exposures assumed by the fund remains sound, in line with the investment policy.
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 021-35311873.
Jamal Abbas Zaidi
Deputy CEO
Applicable rating criterion: Methodology Update: Fund Stability Ratings (February 2012)