JCR-VIS Upgrades Fund Stability Rating Of PICIC Income Fund
KARACHI, Jan 5 (UrduPoint / Pakistan Point News - 05th Jan, 2017 ) : JCR-VIS Credit Rating Company Limited has upgraded the Fund Stability Rating (FSR) of PICIC Islamic income fund from 'A (f)' (single A (f) to 'A+9F)' (single A plus (f)).
The previous rating action was announced on December 28, 2015. As per the investment policy, the fund is only allowed to invest in issues/issuers rated 'A-' (single A Minus or above, said a press release here on Thursday.
On annual average, the fund maintained more that three-fourths of net assets as cash and cash equivalents; thereby lowering liquidity risk.
As per asset allocation, exposure has been built in 'a+a rated and above instruments ensuring sound credit quality.
We have been given to understand that the management plans to maintain credit quality of investment distribution at current level going forward. However, in view of flexibility available in credit quality, fund is exposed to credit risk where management exercises its discretion.
Market risk is considered manageable due to low duration as most Shariah Compliant Income securities have a variable rate of return. APP/ah/as/ms/anm