JCR-VIS Reaffirms Fund Stability Rating of KASB Cash Fund

Karachi, February 17, 2015 (PPI-OT): JCR-VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of KASB Cash Fund (KCF) at ‘AA(f)’ (Double A(f)). The previous rating action was announced on April 8, 2013.

In November 2014 the fund size fell to Rs. 347m vis-à-vis Rs. 1.1b at end-October 2014 (June 2014: Rs. 1.1b, June 2013: Rs. 1.1b) post the moratorium imposed on KASB Bank Limited (KBL) and the resultant franchise impact sustained by the fund. With a portfolio comprising highly liquid short term assets in line with the investment mandate, KCF was able to sustain the redemption pressure.

At end-December 2014, the fund size was reported at Rs. 323m; as per management, the redemption pressure has tapered off. The portfolio at end-December 2014 comprises cash to the extent of 16.02% and placements with banks/DFIs to the tune of 81.95%. The fund’s WAM was reported at 8 days at end-December 2014. In the current scenario, maintaining WAM at lower end may be considered prudent.

Unit-holder concentration has experienced an up-tick, following the redemptions; the fund’s ability to meet redemptions is however considered sound, in view of the nature of assets. Overall investment strategy of the fund has remained in line with assigned guidelines which has kept both market and credit risk at minimal levels. Returns of the fund also compare favourably to peers.

For more information, contact:
Ms. Sobia Maqbool
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

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