JCR-VIS Revises Fund Stability Ratings of JS Cash Fund

Karachi, December 20, 2017 (PPI-OT):JCR-VIS Credit Rating Company Limited has revised the Fund Stability Rating of JS Cash Fund (JSCF) from ‘AA+(f)’ (Double A(f) Plus) to ‘AA(f)’ (Double A(f)). Previous rating action was announced on December 30, 2016. The rating incorporates management’s intention to modify the fund’s operational investment policy, whereby target duration of the fund has been extended to 90 days as compared to 60 days previously. Actual duration was reported at 22 days on average for the period ending November 2017, though recorded at higher levels during the period. Given the credit quality of the fund’s current portfolio and exposure limits outlined in the operational policy, credit risk is expected to remain low.

At end-November 2017, investment in government securities and instruments rated AA+ and above represented 76.9% of net assets. Remaining net assets comprised bank placements with counter parties having minimum credit rating of ‘AA’. Given significant redemptions during the period under review, concentration of the fund increased with top ten investors contributing 78.2%. Liquidity profile of the fund is nevertheless considered sound with assets deployed in low risk and short term instruments.

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

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