Karachi, September 30, 2015 (PPI-OT): JCR-VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of BMA Empress Cash Fund (BECF) at ‘AA+(f)’ (Double A Plus(f)). The previous rating action was announced on October 23, 2014.
The rating takes into account variation in actual asset allocation versus previously applicable internal investment policy. As per the policy, the fund was required to maintain a minimum exposure of 50% in government securities while weighted average maturity (WAM) and duration of the fund were capped at 60 days.
From November 2014 onwards, shifting of assets from T-bills to government guaranteed deposits was evident resulting in exposure in T-bills falling below the minimum threshold stipulated in the available operational investment policy. At end-July 2015, almost 34% of the fund’s assets were deployed in government securities and WAM was reported at 21 days. Unit-holding pattern featured concentration with top 10 holding remaining significant. Given the credit and liquidity profile of assets, ability to meet redemptions is considered sound.
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