Press Release
VIS Reaffirms Fund Stability Rating for ABL Cash Fund
Karachi, December 30, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) for ABL Cash Fund (ABL CF) at ‘AA+ (f)’ (Double A Plus (f)). The medium to long-term rating of ‘AA+’ denotes high degree of stability in NAV, risk is modest but may vary from time to time because of changing economic conditions. Previous rating action was announced on January 18, 2022.
ABL CF operates as a money market fund. Credit quality metrics remained in line with VIS criteria and the fund’s Investment Policy Statement (IPS).
During FY22, fund size registered significant growth with net assets closing at Rs. 45b (FY21 Rs. 34.8b) Growth momentum has continued with fund size increasing to Rs. 64b end-October’22 registering a 66% growth since FY21. The fund’s asset allocation plan majorly complied with the Offering Document, with the fund’s net assets under management primarily concentrated in cash balances and T-bills while remaining investment portfolio comprised of money market placements and bank deposits. In line with the fund’s IPS which restricts exposure in below ‘AA’ rated instruments, average allocation remained largely vested in ‘AAA’ and ‘AA+’ rated avenues during FY22. Weighted Average time to Maturity (WAM) of the fund also remained compliant within its capped limit of 90 days. The fund’s performance however, deteriorated during the year, ABL CF was placed in the third quartile ranking 16 out of 21 (FY21 8 out of 21).
For further information on this rating announcement, please contact Ms. Syeda Batool Zehra Zaidi (Ext: 210) or the undersigned (207) at 021-35311861-70 or email at info@vis.com.pk.
Sara Ahmed
Director
Applicable Rating Criteria: Fund Stability Ratings (December 2020)
https://docs.vis.com.pk/docs/FundstabilityRating.pdf