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JCR-VIS reaffirms Fund Stability Rating of Askari Cash Fund

Lahore, July 05, 2018 (PPI-OT): JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed Fund Stability Rating of Askari Cash Fund (ACF) at ‘AA+(f)’ (Double A Plus(f)). The previous rating action was announced on December 30, 2016.

During the period under review, the fund was renamed as Askari Cash Fund (ACF – formerly Askari Sovereign Cash Fund), post-acquisition of Askari Investment Limited (AIML) by Pak Oman Asset Management Limited (POAML). ACF is an open-end money market fund designed to invest in low risk portfolio while maintaining high liquidity. Net assets of the fund have depicted a declining trend from Rs. 2.1b at end-June 2016 to Rs. 341.1m at end-May 2018.

In line with its mandate, the fund’s exposure to various sources of risks has been maintained at low end of the risk spectrum, both by policy and as also manifested in actual asset allocation. As per its Investment Policy Statement (IPS), the fund maintained majority of its assets in AA rated avenues with credit quality of the fund remaining sound. Over the review period, the fund adhered to the 90 days limit of duration with low market risk. With a lower fund size, top-10 investor concentration in the fund has showcased an increase. Proportion of retail investments also depicts room for improvement. The fund needs to ensure granularity in order to support its liquidity position.

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