Karachi, December 31, 2018 (PPI-OT): JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) has reaffirmed the Fund Stability Rating of Al-Ameen Islamic Sovereign Fund (AISF) at ‘AA-(f)’ (Double A Minus (f)). The previous rating action was announced on December 29, 2017.
Being a sovereign fund, AISF is required to maintain at least 70% of assets in Shariah compliant sovereign instruments while a floor of 10% is also applicable in relation to cash and near cash instruments. Asset quality restrictions limit the fund from investing in any instrument rated below ‘AA-’. Majority of the assets remained vested with Shariah compliant Government of Pakistan (GoP) Ijarah and bank deposits with at-least ‘AA’ rated Banks.
Actual Weighted Average Maturity (WAM) of the fund remained in line with policy limits. Duration of the fund has exceeded JCR-VIS’s internal criteria for the assigned rating over FY17 due to lack of availability of floating rating GoP Ijarah Sukuk. Future trend with respect to duration of the fund and resultant market risk assumed by the fund will continue to be tracked by JCR-VIS. Investor concentration in the fund has observed decline during outgoing fiscal year. Given that most of the fund is invested in liquid avenues, the fund’s ability to meet redemptions in a timely manner remains sound.
For more information, contact:
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk