Press Release
VIS Reaffirms Fund Stability Rating of Askari Cash Fund
Karachi, December 17, 2021: VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of Askari Cash Fund (ACF) at ‘AA+ (f)’ (Double A Plus (f)). The previous rating action was announced on December 31, 2020.
ACF is an open-ended money market scheme with an objective of maintaining a low risk and liquid investment portfolio. As per the fund’s mandate, it 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’.
Net assets of the fund recorded an increase during FY21, increasing from Rs. 1,196m to Rs. 1,574m. In line with the Investment Policy objectives, the fund maintained its exposure in liquid instruments mainly cash and government securities. However, in some instances during the year, cash holdings fell below the minimum threshold prescribed in the Investment Policy. The liquid nature of the portfolio maintained weighted average maturity (WAM) of the portfolio well under the benchmark for the assigned rating. Credit quality of the fund was sustained with exposures concentrated in ‘AAA’ and ‘AA’ rated instruments, in line with fund’s mandate. The fund outperformed the annual return benchmark during FY21, although relative performance against peers declined compared to last year. Ability to meet redemptions is adequate owing to the fund’s liquid asset allocation plan.
For further information on this rating announcement, please contact Ms. Sara Ahmed (Ext: 207) or the undersigned (Ext: 306) at 35311861-70 or email at info@vis.com.pk
Faryal Ahmed Faheem
Deputy CEO
Applicable rating criteria: Fund Stability Ratings (December 2020)
https://docs.vis.com.pk/docs/FundstabilityRating.pdf