Press Release

JCR-VIS Reaffirms Fund Stability Rating of First Habib Cash Fund

Karachi, September 10, 2015: JCR-VIS Credit Rating Company Limited has reaffirmed the fund stability rating (FSR) of First Habib Cash Fund (FHCF) at ‘AA(f)’ (Double A(f)). The previous rating action was announced on December 26, 2014.

In line with its mandate, FHCF maintains a conservative risk profile with investments mainly in short-term government paper and placements in financial institutions. As per investment policy, at least 60% of assets are targeted to be invested in government securities with remaining assets to be deployed in at least ‘AA’ rated entities/instruments. With the exception of a slight breach in one month, actual asset allocation of the fund remained compliant with the above stipulations during FY15. Around 3/4th of total assets remained invested in T-bills, as per month end average. To minimize losses from adverse movement in discount rate, weighted average maturity (WAM) and duration of the fund are capped at 90 and 60 days, respectively. Net assets of the fund depicted variation during FY15 with significant redemptions from corporate clients during 4Q15; fund size amounted to Rs. 1.3b at end-FY15. Unit holding pattern features notable concentration. The fund is however expected to be able to meet redemptions in a timely manner, given the liquidity profile of assets.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) at 021-35311861-71 or Mr. Maimoon Rasheed at 042-35723411-3 or fax to 021-35311872-3.



Jamal Abbas Zaidi
Deputy CEO

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

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