Press Release

JCR-VIS Reaffirms Fund Stability Rating of PICIC Income Fund

Karachi, August 17, 2012: JCR-VIS Credit Rating Company Limited has reaffirmed the fund stability rating (FSR) of PICIC Income Fund (PIF) at ‘A+(f)’ (Single A Plus (f)).

The risk profile of PIF has depicted stability, with a conservative approach adopted by management to undertake exposures. The fund was predominantly invested in government securities at end-June 2012. In order to maintain risk profile of the fund, going forward, the management has proposed to increase the minimum entity rating for taking exposures from ‘A’ to ‘A+’ by making amendments to the investment policy. Though the investment policy provides room for the fund to invest in margin trading system, actual investment in this avenue has been marginal. Asset mix of the fund will continue to be monitored for impact on risk profile.

Interest rate risk that may be assumed by the fund may be significant, as duration may be extended up to 1 year; actual weighted average maturity of the fund’s assets was however much lower at 48 days at end-June 2012. Future strategy may be re-aligned in view of the management’s macro-economic outlook, in order to augment returns. For FY12, the fund’s return was marginally lower than the benchmark return. Month-on-month returns have depicted variation over the last year.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 506) at 021-35311861-70 or fax to 021-35311872-3.



Jamal Abbas Zaidi
Deputy CEO

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 2012 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .