Press Release
JCR-VIS Reaffirms Fund Stability Rating of BMA Empress Cash Fund
Karachi, September 30, 2015: JCR-VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of BMA Empress Cash Fund (BECF) at ‘AA+(f)’ (Double A Plus(f)). The previous rating action was announced on October 23, 2014.
The rating takes into account variation in actual asset allocation versus previously applicable internal investment policy. As per the policy, the fund was required to maintain a minimum exposure of 50% in government securities while weighted average maturity (WAM) and duration of the fund were capped at 60 days. From November 2014 onwards, shifting of assets from T-bills to government guaranteed deposits was evident resulting in exposure in T-bills falling below the minimum threshold stipulated in the available operational investment policy. At end-July 2015, almost 34% of the fund’s assets were deployed in government securities and WAM was reported at 21 days. Unit-holding pattern featured concentration with top 10 holding remaining significant. Given the credit and liquidity profile of assets, ability to meet redemptions is considered sound.
For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) at 021-35311861-71 or Mr. Maimoon Rasheed at 042-35723411-3 or fax to 021-35311872-3.
Jamal Abbas Zaidi
Deputy CEO
Applicable Rating Criteria: Fund Stability Ratings (February 2012)
http://jcrvis.com.pk/Images/FSRMeth-201202.pdf