Press Release

JCR-VIS Reaffirms Fund Stability Rating of PICIC Cash Fund

Karachi, December 22, 2014: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Fund Stability Rating (FSR) of PICIC Cash Fund (PCF) at ‘AA(f)’ (Double A (f)). The previous rating action was announced on December 30, 2013.

In line with its categorization, PCF has a low risk appetite. As per the fund’s investment policy, at least 40% of net assets have to be maintained in government securities while the remaining exposures are subject to a minimum credit rating of ‘AA’. Weighted Average Maturity (WAM) of the fund’s assets is capped at 90 days.

Given both the policy limitations and actual asset allocation, credit risk exposure of the fund has remained low. In FY14, almost two-thirds of the fund’s assets (as per month end average), remained deployed in government paper; end-Nov’14 exposure in this avenue was 72%. Lately, the fund has enhanced WAM; as per the Fund Manager, the room between discount rate and inflation would widen, going forward, and this may trigger rate cut, in view of which WAM would be maintained at the higher end of allowed limit. Unit holder-concentration has depicted some improvement; though it continues to be on the higher side. However, ability of the fund to meet redemptions in a timely manner is considered sound, given the liquidity profile of assets. Given the low exposure to various sources of risks, the fund is expected to exhibit stability in returns, barring any changes in the market benchmark rate itself.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at 35311861-70 or fax to 35311872-3.



Jamal Abbas Zaidi
Deputy CEO

Applicable rating criteria: Fund Stability Ratings (February 2012)

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