Press Release
VIS Reaffirms Fund Stability Rating for ABL Cash Fund
Karachi, December 31, 2020: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) for ABL Cash Fund (ABL CF) to ‘AA+ (f)’ (Double A Plus (f)). Previous Rating action was announced on January 20, 2020.
Established in July’ 2010, ABL CF operates as a money market fund. The credit quality of exposures remained in line with VIS criteria and the fund’s IPS and no breaches were witnessed during FY20.
Net Assets of the fund manifested an increase of 27% reporting at Rs. 26.9b (FY19: Rs. 21.2b) at end-June’20. The fund’s asset allocation plan remained primarily concentrated in its cash balances and T-bills while remaining investment portfolio comprised of money market placements and commercial paper. The fund’s Investment Policy Statement (IPS) restricts exposure in below ‘AA’ rated instruments; during FY20, average allocation in AAA and AA+ rated instruments accounted for 49% and 46% of the AUMs, respectively. WAM of the fund is capped at 90 days for which the fund remained compliant for the assigned ratings. Portion held by retail investors and associates increased however, unrelated corporates provide major proportion of the fund’s asset base as seen historically.
For further information on this rating announcement, please contact Ms. Asfia Aziz or the undersigned (Ext. 301) at 021-35311861-70 or email at info@vis.com.pk.
Faheem Ahmad
President & CEO
Applicable Rating Criteria: Fund Stability Ratings (December 2020)
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/FundstabilityRating.pdf
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