Press Release
VIS Reaffirms Fund Stability Rating of Al -Ameen Islamic Cash Fund
Karachi, January 13, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of Al-Ameen Islamic Cash Fund (AICF) at ‘AA+ (f)’ (Double A Plus (f)). Previous rating action was announced on January 6, 2021.
AICF is a Shariah Compliant fund aimed at providing high liquidity and competitive returns while seeking maximum possible preservation of capital by investing in low risk and liquid Shariah Compliant instruments. Net assets of the funds decreased to Rs. 5.8B at end-Jun’21 from Rs. 8.1b at end of FY20. However, net assets increased to Rs. 7.1b in Dec’21. As per Investment Policy Statement (IPS), Weighted Average Maturity (WAM) is capped at 90 days while exposures can only be taken in ‘AA’ and above rated investment avenues.
The fund complied with the credit quality requisites for the assigned ratings. Around 88.7% of the fund’s net assets is concentrated in cash and bank placements. WAM also remained compliant within the specified limit as per assigned ratings. The fund continued to outperformed vis-à-vis its benchmark return rate as well as peer average. However, relative ranking remains in the third quartile which post year end depicts improvement. Around three-fifth of the fund base is provided by retail investors while top-10 investors’ concentration is considered moderate.
For further information on this rating announcement, please contact Ms. Sara Ahmed (Ext: 207) or the undersigned (Ext: 204) at 35311861-70 or email at info@vis.com.pk
Faryal Ahmad Faheem
Deputy CEO
Applicable rating criteria: Fund Stability Ratings (December 2020)
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/FundstabilityRating.pdf