Press Release

JCR-VIS assigns Positive Outlook to MQ Rating of PICIC Asset Management Company Limited and assigns Preliminary Fund Stability Rating of ‘A+(f)’ to PICIC Income Fund

May 31, 2010: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned ‘Positive’ Outlook to the ‘AM3’ (AM-Three) Management Quality Rating of PICIC Asset Management Company Limited (PICIC AMC).

The rating action takes into account steps taken by the company towards further improvement in investment mix of funds through added focus on liquid and blue chip scrips while also focusing on enhancing the management resource in view of the expected launch of open-end fixed income funds going forward. Successful launch of the PICIC Income Fund (PICIC-IF), performance of open-end and closed end funds vis-à-vis peers/benchmarks and ability to develop a diversified investor base may lead to upward revision of the rating going forward.

JCR-VIS has also assigned Preliminary Fund Stability Rating of ‘A+(f)’ (Single A Plus (f)) to PICIC-IF. PICIC-IF is an open-end income fund proposed to be launched by PICIC AMC with an objective to provide consistent returns to its investors through active investments in a blend of short, medium and long term debt instruments. The fund will aim to preserve capital while maximizing returns generated through investments in government securities, debt instruments, bank placements (including term deposits), money market instruments, and reverse repurchase transactions. In order to mitigate liquidity risk the fund will invest minimum of 25% in cash and near cash securities including short-term government securities. Cognizant of the prevailing economic scenario and credit crunch in the market, the management has also restricted itself to invest in fixed investment instruments carrying minimum rating of ‘A+’. The rating will be finalized after successful launch of the fund and performance of the fund will be monitored thereafter against the stated benchmark, which is six-month Kibor.

For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext: 604) or Ms. Sabeen Saleem (Ext: 510) at (+92-21) 35311861-70 or fax to (+92-21) 35311872-3.


Faheem Ahmad
President & CEO

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