JCR-VIS reaffirms Fund Stability Rating of Allied Bank Limited Islamic Income Fund

Karachi, December 31, 2015 (PPI-OT): JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the Fund Stability Rating of ABL Islamic Income Fund from at ‘A(f)’ (Single A (f)). The previous rating action was announced on October 16, 2014.

The reaffirmation of rating takes into account the actual investment allocation and composition of the fund portfolio. The fund has introduced a change in the investment policy placing maximum 15% sub-limit for investment in instruments with an ‘A-’ credit quality rating.

Approximately half of the fund’s assets, as per month-end averages, have been held as cash and bank balances, to mitigate investor risk. Despite increased holdings in Shari’ah compliant Sukuks (sovereign and private), interest rate risk remains manageable due to the re-pricing model of Islamic instruments. Investor concentration of the fund has improved on account of increased acceptance of the fund by retail investors.

For more information, contact:
Ms. Sobia Maqbool
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk