Press Release
VIS Reaffirms Fund Stability Rating of Al Ameen Islamic Cash Fund
Karachi, December 29, 2023: VIS Credit Ratings Company Ltd. (VIS) has reaffirmed Fund Stability Rating (FSR) at ‘AA+(f)’ (Double A Plus (f)). The medium to long-term rating of ‘AA+’ denotes high degree of stability in Net Asset Value. Risk is modest but may vary slightly from time to time because of changing economic conditions. The previous rating action was announced on December 29, 2022.
Launched in September 2012, Al Ameen Islamic Cash Fund (AICF) is an open-ended, Shariah compliant money market fund, managed by UBL Fund Managers Limited. The objective of the scheme is to provide high liquidity and competitive returns while seeking the maximum possible preservation of capital by investing in low-risk and liquid Shariah compliant instruments.
The Fund has exhibited strong growth in its Asset under Management (AUMs) reaching Rs. 17.2b as of June’23 (June’22: Rs. 7.8b). The Fund remained aligned with the asset allocation parameters and minimum credit quality rating outlined in the offering document (OD). The Fund also remained compliant with the stipulated Weighted Average Maturity (WAM) of 90 days as per the OD.
The retail proportion of unit holders has decreased yet remains high at 60% as of June’23 (June’22: 71%), consequently, the top 10 unit holder concentration increased from 33% as of June’22 to 41% as of June’23. However, the liquidity profile remains strong given the majority of asset allocation is parked in cash. Relative to peers, the fund is placed in the fourth quartile and underperformed its peer on average return, though outpaced its benchmark return.
For further information on this ratings announcement, please contact Mr. Muhammad Amin Hamdani (Ext: 217) or the undersigned (Ext: 208) on 021-35311861-64 or email at info@vis.com.pk.
Syed Asif Ali
Executive Director
Applicable Rating Criteria: Fund Stability
https://docs.vis.com.pk/docs/FundstabilityRating.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf
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