Press Release

JCR-VIS Reaffirms Fund Stability Rating of Al-Ameen Islamic Sovereign Fund

Karachi, December 29, 2017: JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) has reaffirmed the Fund Stability Rating of Al-Ameen Islamic Sovereign Fund (AISF) at ‘AA-(f)’ (Double A Minus (f)). The previous rating action was announced on December 30, 2016.

Being a sovereign fund, AISF is required to maintain at least 70% of assets in Shariah compliant sovereign instruments while a floor of 10% is also applicable in relation to cash and near cash instruments. Asset quality restrictions limit the fund from investing in any instrument rated below ‘AA-’. Majority of the assets remained vested with Shariah compliant Government of Pakistan (GoP) Ijarah and bank deposits with at-least ‘AA’ rated Banks.

Actual Weighted Average Maturity (WAM) of the fund remained in line with policy limits. Duration of the fund has exceeded JCR-VIS’s internal criteria for the assigned rating over FY17 due to lack of availability of floating rating GoP Ijarah Sukuk. Future trend with respect to duration of the fund and resultant market risk assumed by the fund will continue to be tracked by JCR-VIS. Investor concentration in the fund has observed decline during outgoing fiscal year. Given that most of the fund is invested in liquid avenues, the fund’s ability to meet redemptions in a timely manner remains sound.

For further information on this rating announcement, please contact the undersigned (Ext: 207) or Mr. Javed Callea (Ext: 201) at 35311861-70 or fax to 35311872.



Jamal Abbas Zaidi
Advisor


Applicable Rating Criteria: Fund Stability Ratings (December 2017)

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 29, 2017 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.