Press Release
JCR-VIS Reaffirms Fund Stability Rating of AA+(f) to BMA Empress Cash Fund
Karachi, July 11, 2011: JCR-VIS Credit Rating Company Limited has finalized the fund stability rating (FSR) of BMA Empress Cash Fund (BECF) at ‘AA+(f)’ (Double A Plus (f)).
The rating incorporates sound risk profile of the fund as depicted by its investment policy and actual asset allocation. As a money market fund, weighted average time to maturity of the fund cannot exceed 90 days. Duration of the fund at end-Jun’11 was 70 days, signifying low interest rate risk. In addition to compliance with regulatory requirements for money market funds, the operational policy of the fund also lays down further requirements. As per the operational investment policy, for the next 12 months, the fund will invest minimum of 50% of net assets in T-bills. On an average, exposure in T-bills has represented around 74% of total assets during Jan-Jun’11, reflecting high credit quality.
In relation to the substantial growth witnessed by money market funds in the past one year, the fund has demonstrated limited growth. While investor profile features concentration, liquidity profile of the exposures carried by the fund is deemed sound which reflects sound capacity to meet redemptions in a timely manner.
For further information on this rating announcement, please contact Ms. Sabeen Saleem, CFA (Ext: 510) or Ms. Sobia Maqbool, CFA (Ext: 506) at 021-35311861-70 or fax to 021-35311872-3.
Faheem Ahmad
President & CEO