Press Release

JCR-VIS Revises Fund Stability Rating of PICIC Income Fund

Karachi, January 04, 2016: JCR-VIS Credit Rating Company Limited (JCR-VIS) has revised the Fund Stability Rating (FSR) of PICIC Income Fund (PIF) to ‘A (f)’ (Single A (f)) from ‘A+ (f) (Single A Plus (f)). The previous rating action was announced on February 25, 2015.

The rating action takes into account increasing duration and weighted average maturity of fund’s assets which has increased fund’s sensitivity to interest rate movements. This is on account of fund’s higher allocation to PIBs to benefit from the decline in interest rates. During FY15, average month-end allocation to PIBs was recorded at around 54% of fund’s net assets as compared to 22.3% in the preceding year. Credit quality of fund’s asset remains sound reflected by sizeable investment in government securities.

After declining during FY15, the size of the fund has increased in the ongoing year. Month-on-month return of the fund depicted volatility attributable to changes in benchmark rate and the resultant impact on asset valuations. While improving on a year-on-year basis, investor concentration remains high.

For further information on this rating announcement, please contact the undersigned (Ext: 516) or Mr. Javed Callea (Ext: 501) at 021-35311861-71 or fax to 021-35311872-3.



Jamal Abbas Zaidi
Advisor

Applicable rating criteria: Fund Stability Ratings (February 2012)
http://jcrvis.com.pk/Images/FSRMeth-201202.pdf

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