Press Release

VIS Reaffirms Fund Stability Rating of Al Ameen Islamic Cash Fund

Karachi, January 09, 2025: VIS Credit Ratings Company Ltd. (VIS) has reaffirmed Fund Stability Rating (FSR) at ‘AA+(f)’ (Double A Plus (f)). The medium to long-term fund rating of ‘AA+’ denotes high degree of stability in Net Asset Value. Risk is modest but may vary slightly from time to time because of changing economic conditions. The previous rating action was announced on December 29 2023.

Launched in September 2012, Al Ameen Islamic Cash Fund (AICF) is an open-ended, Shariah compliant money market fund, managed by UBL Fund Managers Limited. The objective of the scheme is to provide high liquidity and competitive returns while seeking the maximum possible preservation of capital by investing in low-risk and liquid Shariah compliant instruments.

Assigned rating incorporates the Fund’s asset allocation, which was largely aligned with the parameters outlined in the offering document. Investments of the Fund was primarily focused on government securities, cash deposits and placement with DFIs. Rating also considers the credit quality of the Fund, with credit exposures largely vested in Govt Sec./AAA rated avenues, in line with the parameters defined in the offering document. Going forward, maintenance of credit quality in line with VIS rating benchmarks will be important., instances of minimal placements in A+ rated avenues were noted.

Rating draws support from the Fund’s liquidity profile and duration of its assets. Additionally, the Fund’s weighted average time to maturity (WAM) has consistently remained below the defined threshold outlined in the offering document. The Fund’s portfolio is dominated by retail investors. Additionally, the client concentration risk is considered low. Fund performance remained fairly stable throughout the year.

Applicable Rating Criteria: Fund Stability Ratings
https://docs.vis.com.pk/docs/FundstabilityRating.pdf

VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

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 2025 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .