Press Release
Fund Stability Rating of Al-Ameen Islamic Aggressive Income Fund
Karachi, December 31, 2019: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of Al-Ameen Islamic Aggressive Income Fund (AIAIF) at ‘BBB+ (f)’ (Triple B Plus (f)). The previous rating action was announced on December 31, 2018.
On monthly average basis, actual asset allocation of the fund remained in compliance with the stipulated limits, with sizeable exposure in cash and corporate Sukuk. Interest rate risk is considered manageable on account of lower duration maintained by the fund. Ability of the fund to meet redemptions in a timely manner is adequate given the unit holder concentration and asset allocation of the fund.
In line with its categorization, the fund’s ability to assume risk is on the higher side, with no minimum threshold defined for credit risk. However, the fund has shown improvement in terms of credit risk management with about three fifth of the fund exposure parked in instruments rated AA- and above. Moreover, there is no restriction on time to maturity of a single security. As per the fund’s investment policy, Weighted Average Maturity (WAM) is capped at 5 years. WAM has remained in line with the specific limit in the outgoing fiscal year.
For further information on this rating announcement, please contact Mr. Talha Iqbal (Ext: 213) or the undersigned (Ext: 201) at (021) 35311861-66 or email at info@vis.com.pk .
Javed Callea
Advisor
Applicable Rating Criteria: Fund Stability Ratings (September 2018)
https://s3-us-west 2.amazonaws.com/backupsqlvis/docs/Fund%20stability%20Rating092018.pdf
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