Press Release

JCR-VIS Reaffirms Fund Stability Rating of PICIC Income Fund

Karachi, December 23, 2013: 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)).

During FY13, almost two-thirds of the fund’s assets, on a monthly average basis, remained deployed in government securities in view of which, credit risk arising from the portfolio has remained limited. The investment policy also allows for exposure in margin trading system to the extent of 40% of net assets; actual investment in this avenue during FY13 remained below the allowed threshold. Minimum rating of any other asset in the portfolio was ‘AA-’ at end-June 2013, higher than the minimum rating allowed in the Investment Policy Statement (IPS). The fund has a clearly defined and consistently executed investment philosophy and a well structured investment process.

As per the IPS, the fund can extend duration up to 2 years (preferably one year). In the domestic context, where interest rates have experienced significant volatility, interest rate risk exposure allowed as per policy can be significant. However, maximum duration at any month end during FY13 was 186 days. Investor profile of the fund features significant concentration; PICIC AMC remains the largest investor in the fund. Return of the fund was slightly lower than the benchmark (Average of 6M-KIBOR) in FY13.

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 2013 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .