Karachi: JCR-VIS Credit Rating Company Limited has reaffirmed the Capital Protected Fund (CPF) Rating of KASB Capital Protected Gold Fund (KCPGF) at ‘AA(cpf)’ (Double A (cpf)). The rating reflects very high probability of timely repayment of principal investment.
The find was launched in March 2010 as an open-end fund with a life of two years (maturity: March 2012). Capital protection segment comprises fixed-return TDR with Habib Metropolitan Bank Limited. The investment segment of the fund is invested in gold contracts listed at the Pakistan Mercantile Exchange (formerly National Commodity Exchange Ltd). Apart from this, additional amount is also held in banks to meet expenses. The fund is exposed to market risk on account of its investment in gold contracts. While this may expose the NAV to volatility over the life of the fund, it is not expected to have any impact on the ability of the fund to ensure capital protection.
Credit risk emanating from the current portfolio is low, as term deposit receipts are held with commercial banks rated ‘AA+’.