Fund Stability Rating of Al-Ameen Islamic Aggressive Income Fund
Karachi, December 29, 2017 (PPI-OT):JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Fund Stability Rating (FSR) of Al-Ameen Islamic Aggressive Income Fund (AIAIF) at ‘BBB+(f)’ (Triple B Plus (f)). The previous rating action was announced on December 30, 2016.
The objective of the fund is to invest in medium to long-term Shariah Compliant income instruments as well as shorter tenor money market instruments with the aim of generating superior, long-term, risk adjusted returns while aiming to preserve capital over the long-term. In line with its categorization, the fund’s ability to assume risk is on the higher side, with no minimum threshold defined for credit risk. Moreover, there is no restriction on time to maturity of a single security. As per the fund’s investment policy, Weighted Average Maturity (WAM) is capped at 5 years. WAM has remained in line with the specific limit in the outgoing fiscal year.
On monthly average basis, actual asset allocation of the fund remained in compliance with the stipulated limits, with sizeable exposure in bank deposits and Sukuk. Interest rate risk is considered manageable on account of lower duration maintained by the fund. Ability of the fund to meet redemptions in a timely manner is adequate given the unit holder concentration and asset mix of the fund.
For more information, contact:
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi