Karachi, January 04, 2023 (PPI-OT):VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of Askari Cash Fund (ACF) at ‘AA+ (f)’ (Double A Plus (f)). The medium to long term rating of ‘AA+’ denotes high degree of stability in NAV. Risk is modest but may vary slightly from time to time because of changing economic conditions. The previous rating action was announced on December 17, 2021.

ACF is an open-ended money market scheme with an objective of maintaining a low risk and liquid investment portfolio. As per the fund’s mandate, it must deploy its assets in instruments with a minimum credit rating of ‘AA’ although money market placements require a minimum credit rating of ‘AAA’.

Fund size has registered growth in FY22, with asset base increasing from 1,576m in June’21 to 2,025m in June’22. The fund managed to cater to its mandate by maintaining its exposures in cash and government securities, barring few instances where cash holdings fell below the minimum threshold prescribed in the Investment Policy.

In light of the liquid nature of the portfolio, the fund managed to maintain its weighted average maturity (WAM) of the portfolio well under the benchmark for the assigned rating. Credit quality of the fund depicts some weakening with a larger proportion invested in ‘AA’ rated instruments, albeit it remained in line with the fund’s mandate. The fund outperformed the benchmark, albeit underperformed the peer average by a nominal amount, hence, ranks lower with respect to peers. Ability to meet redemptions remained sound on the back of the fund’s liquid profile.

For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: bilal@jcrvis.com.pk
Website: https://www.vis.com.pk/