Press Release

JCR-VIS assigns initial Fund Stability Rating of Askari Sovereign Cash Fund

Karachi, December 31, 2015: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned initial Fund Stability Rating of Askari Sovereign Cash Fund (ASCF) at ‘AA+(f)’ (Double A Plus(f)).

Established in September 2009, ASCF operates as an open end money market fund. As per internal investment policy limits, the fund by and large maintains a minimum 70% in government securities. Ensuring sound credit quality of the portfolio, all counter parties are required to be rated AA and above. Government issued or guaranteed securities are all rated AAA. Net assets of the fund have significantly decreased from Rs. 4b at end-FY14 to Rs. 1.8b at end-FY15. Redemptions have occurred on account of limited potential positive upside available in money market funds in the industry. Nonetheless, performance of the fund improved during FY15 placing the fund in the 1st quartile amongst peers. Asset composition of government securities and bank placements ensure liquidity risk remains minimal.

For further information on this rating announcement, please contact the undersigned (Ext: 516) or Jazib Ahmed, CFA (Ext: 604) at 021-35311861-70 or fax to 021-35311873.

Jamal Abbas Zaidi
Advisor

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

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