Press Release
JCR-VIS assigns Fund Stability Ratings to ABL Cash Fund and ABL Islamic Cash Fund
Karachi, July 29, 2010: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned preliminary Fund Stability Rating of ‘AA+(f)’ (Double A plus (f)) to ABL Cash Fund (ABL CF) and ‘AA(f)’ (Double A (f)) to ABL Islamic Cash Fund (ABL ICF).
The assigned rating takes into account the investment policy; planned asset allocation and expected duration of the funds. The weighted average time to maturity of both the funds, shall not exceed 90 days and time to maturity of any asset held by the funds, shall not exceed 6 months. This is expected to allow the funds to maintain low level of price risk and strong liquidity profile.
The rating of ABL CF takes into account investment objective of the fund, which is to provide consistent returns with high level of liquidity. The fund aims to invest in Market Treasury Bills; Term Deposits; Money Market Placements and Reverse Repos (underlying security being Market Treasury Bills). All investments/placements will be in instruments/entities rated ‘AA’ (Double A) and above. Minimum exposure limit for investment in Market Treasury Bills has also been taken into consideration. The benchmark return of the fund will be the average of the most recently published 3-Month deposit rates of ‘AA’ and above rated scheduled banks.
The rating of ABL ICF takes into account investment objective of the fund, which is to preserve capital while maximizing returns generated through investments in liquid Shariah compliant instruments. The fund aims to invest in government guaranteed Sukuks; cash and bank deposits; shariah compliant instruments including COIIs, COMs, CODs and other shariah compliant avenues as per guidelines of the fund’s shariah advisor. All investments/placements will be in instruments/entities rated ‘AA’ and above. Minimum limit for placement in cash and bank deposits has also been considered. The benchmark return of the fund will be the average of the most recently published 3-Month deposit rates offered by 3 Islamic Banks.
The ratings will be finalized after launch of ABL CF & ABL ICF. Risk profile of the funds will be monitored thereafter vis-à-vis the above stated investment policies.
For further information on this rating announcement, please contact the undersigned (Ext: 501) or Mr. Zia Usmani (Ext: 507) at 021-35311861-70 or fax to 021-35311873.
Javed A. Callea
Advisor
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 2010 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .