Press Release

VIS reaffirms Fund Stability Rating of Askari Cash Fund

Karachi, December 31, 2020: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Fund Stability Rating of Askari Cash Fund (ACF) at ‘AA+(f)’ (Double A Plus(f)). The previous rating action was announced on November 26, 2019.

ACF is an open-end money market fund designed to invest in low risk portfolio while maintaining high liquidity. In line with its mandate, the fund’s exposure to various sources of risks has been maintained at the lower side, both by policy and also as manifested in actual asset allocation.

At end-Jun’20, net assets of the fund increased to 1196mn (FY19 786mn) whereas highest growth in the fund size was observed in Jan’20 with net AUMs closing at 2,102m. In order to maintain the fund’s exposure to various sources of risks, the fund must deploy its assets in instruments with a minimum credit rating of ‘AA’ although money market placements and government securities require a minimum credit rating of ‘AAA’ In line with its mandate, the fund majorly complied with the stipulated standards of the offering document (OD) However, several instances depict low allocation in cash throughout the period. At end-June’20 net assets of the fund comprised of major cash placement while remaining chunk of the portfolio consisted T-bills and other authorized investment avenues. Top 10 investors constituted over 76% of total net assets. Over the review period, the fund adhered to the 90 days limit of duration for the assigned ratings. Ability to meet redemptions is adequate owing to the fund’s liquid asset allocation plan.


For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 204) or the undersigned (Ext: 301) at 35311861-70 or email at info@vis.com.pk




Faheem Ahmad
President & CEO

Applicable rating criteria: Fund Stability Ratings (December 2020)
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/FundstabilityRating.pdf

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 31, 2020 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.