JCR-VIS Reaffirms Fund Stability Rating of First Habib Cash Fund
Karachi, January 15, 2018 (PPI-OT):JCR-VIS Credit Rating Company Limited has reaffirmed the fund stability rating (FSR) of First Habib Cash Fund (FHCF) at ‘AA (f)’ (Double A(f)). The previous rating action was announced on January 02, 2017. FHCF is an open-end money market fund; in line with its categorization, exposure to various sources of risks has been maintained at low end of the risk spectrum, both by policy and actual asset allocation. The fund is mandated to hold assets with minimum rating of ‘AA’.
The fund’s constitutive documents also limit Weighted Average Maturity (WAM) at 90 days. Actual asset allocation has remained conservative with average exposure in ‘AA’ and above rated investment avenues. However, violations of JCR-VIS’s criteria of maintaining 25% of net assets in ‘AAA’ rated exposures were noted during the review period. The fund’s WAM has also remained within the allowed limit. FHCF’s unit holding features concentration, however given the liquidity profile of assets, ability to meet redemptions is considered sound.
For more information, contact:
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi