Press Release

VIS Reaffirms Fund Stability Rating of Askari Cash Fund

Karachi, January 02, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed Fund Stability Ratings (FSR) of Askari Cash Fund (ACF) at ‘AA+(f)’ (Double A Plus (f)). Medium to long-term fund rating of ‘AA+’ reflects high degree of stability in Net Asset Value; Risk is modest but may vary slightly from time to time because of changing economic conditions. Previous rating action was announced on December 27, 2023

Launched in June 2009, ACF is an open-end, money market fund, managed by Pak Oman Asset Management Company Limited. The objective of the Fund is to provide the investors with a high level of liquidity along with extremely low credit and price volatility. The Fund shall provide the facility to invest in an underlying portfolio primarily comprising of government securities (Treasury Bills) and other Authorized Investments which shall enable the investor to manage their liquidity efficiently.

With the fund size contracting in FY24, asset allocation of the fund largely adhered to its mandate outlined in the offering document, with instances of non-compliance noted regarding the minimum exposure limit for cash during certain months. On average, the Fund’s investments were predominantly in T-Bills, followed by exposures in cash. Assigned rating also reflects the credit quality of the Fund, which aligned with the parameters specified in the offering document, with investments predominantly in AA and higher rated securities. Additionally, the Fund’s credit quality is in line with the VIS benchmark for the assigned rating.

The weighted average time to maturity (WAM) of the Fund remained below the maximum threshold defined in the offering document. Liquidity profile of the Fund is considered sound, with investments primarily in liquid assets. The Fund’s AUM mix is dominated by the corporate investors, while remaining assets are held by associates and retail investors. Additionally, client concentration risk is considered high. In terms of the performance, the Fund’s annualized return outperformed both its benchmark return and peer average, positioning it in the second quartile.

For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk

Applicable Rating Criteria: Fund Stability Ratings
https://docs.vis.com.pk/docs/FundstabilityRating.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.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 2025 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .