Press Release

JCR-VIS Reaffirms Fund Stability Rating of ABL Income Fund

Karachi, December 30, 2016: 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(f)). Last rating action was taken on 31st December 2015.

ABL Income Fund (ABL-IF) is an open end fund launched in September’2008. The operational policy of the fund stipulates that a quarter of assets must be deployed in cash and near cash instruments. Primary alterations in the policy have increased allowable exposure in Margin Trading System (MTS) and Term Finance Certificates (TFC) to 40% and 75% of net assets, respectively. Ratings would however be faced with downward pressure if investment in MTS limits are fully utilized. However, on average, the fund maintained 40% exposure in government securities with cash & bank balances and TFCs comprising remaining investments. Credit quality of exposures has remained in line with JCR-VIS’s criteria for the assigned rating with over four-fifth of investments comprising exposures in at least ‘AA-’ rated investment avenues. While remaining in compliance with internal policy limits, a few breaches have been noted of JCR-VIS’s internal duration criteria. The same will continue to be tracked by JCR-VIS, going forward.

Net assets of the fund increased to Rs. 3.7b at end-FY16 (FY15: Rs. 1.9b) with the in-flow of both corporate and retail investors.

For further information on this rating announcement, please contact the undersigned (Ext: 208) or Javed Callea (Ext: 201) at 021-35311861-70 or fax to 021-35311873.



Mohammed Khalid Ali
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 30, 2016 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.