Press Release

JCR-VIS Revises Fund Stability Rating of PICIC Cash Fund

Karachi, December 30, 2013: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has revised the Fund Stability Rating of PICIC Cash Fund (PCF) from ‘AA+(f)’ (Double A(f) Plus) to ‘AA(f)’ (Double A(f)).

In line with its categorization, PCF has a low risk appetite. The fund has a clearly defined and well structured investment process. During FY13, average allocation to t-bills was about 80% of net assets, on a monthly average basis. At the end of June 2013, investment in government securities and instruments rated AA+ and above comprised 94% of net assets. Remaining assets comprised bank placements with counter parties having minimum credit rating of ‘AA’.

As per policy, time to time maturity of any asset shall not exceed six months and weighted average duration is capped at 90 days, preferably at 60 days, depending on the macroeconomic conditions. During the last year, the management took advantage of the policy flexibility, with maximum duration recorded at 89 days at end-Sep’12 and end-Nov’12. With reduced exposure in t-bills, duration has declined subsequently and was reported at 45 days as of November-end 2013; the fund continues to retain the flexibility to increase the same.

Investor profile of the fund features significant concentration. Ability of the fund to meet redemptions in a timely manner is nevertheless considered sound as majority of net assets are deployed in avenues having strong liquidity profile.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at 021-35311861-70 or fax to 021-35311873.




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 .