Press Release
JCR-VIS Reaffirms Fund Stability Rating of PICIC Income Fund
Karachi, August 17, 2012: JCR-VIS Credit Rating Company Limited has reaffirmed the fund stability rating (FSR) of PICIC Income Fund (PIF) at ‘A+(f)’ (Single A Plus (f)).
The risk profile of PIF has depicted stability, with a conservative approach adopted by management to undertake exposures. The fund was predominantly invested in government securities at end-June 2012. In order to maintain risk profile of the fund, going forward, the management has proposed to increase the minimum entity rating for taking exposures from ‘A’ to ‘A+’ by making amendments to the investment policy. Though the investment policy provides room for the fund to invest in margin trading system, actual investment in this avenue has been marginal. Asset mix of the fund will continue to be monitored for impact on risk profile.
Interest rate risk that may be assumed by the fund may be significant, as duration may be extended up to 1 year; actual weighted average maturity of the fund’s assets was however much lower at 48 days at end-June 2012. Future strategy may be re-aligned in view of the management’s macro-economic outlook, in order to augment returns. For FY12, the fund’s return was marginally lower than the benchmark return. Month-on-month returns have depicted variation over the last year.
For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 506) at 021-35311861-70 or fax to 021-35311872-3.
Jamal Abbas Zaidi
Deputy CEO