Karachi, December 29, 2015 (PPI-OT): JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Fund Stability Rating (FSR) of PICIC Cash Fund (PCF) at ‘AA (f)’ (Double A (f)). The previous rating action was announced on December 22, 2014.
PCF is structured as a money market fund; in line with its mandate, the fund’s exposure to various sources of risks has been maintained at low end of the risk spectrum. As per the fund’s investment policy, at least 40% of net assets have to be maintained in treasury bills while the remaining exposures are subject to a minimum credit rating of ‘AA’ (Double A). Weighted Average Maturity (WAM) of the fund’s assets is capped at 90 days.
During FY15, average month-end allocation to government securities was recorded at over 60% while remaining exposures were maintained with highly rated counterparties, in line with the investment policy. Given both the policy limitations and actual asset allocation, credit risk exposure of the fund has remained low.
WAM of the fund’s assets has varied over the last year, while remaining within maximum policy limit. Investment by retail investors increased on a year-on-year basis. There is nevertheless significant room for improvement in investor profile. Ability of the fund to meet redemptions in a timely manner is considered sound as majority of net assets are deployed in avenues having strong liquidity profile.
For more information, contact:
Ms. Sobia Maqbool
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi