Press Release

JCR-VIS Reaffirms Fund Stability Rating of Al-Ameen Islamic Sovereign Fund

Karachi, August 12, 2014: JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) has reaffirmed the Fund Stability Rating of Al-Ameen Islamic Sovereign Fund (AISF) at ‘AA-(f)’ (Double A Minus (f)).

Previously known as UBL Islamic Sovereign Fund, the fund was renamed in the outgoing fiscal year in line with rebranding of all Shariah compliant funds of UBL under the umbrella of Al-Ameen Funds. Being a sovereign fund, AISF is restricted to maintain at least 70% of the assets in Shariah compliant sovereign instruments while a quarter of the assets (monthly average) have to be maintained in highly liquid form i.e. bank deposits or GoP Ijarah Sukuk with maturity falling within 90 days. Asset quality restrictions limit the fund from investing in any instrument rated below ‘AA-’. Actual asset allocation has mostly remained in line with investment guidelines, though the fund has faced some issues in asset deployment on account of limited fresh issuance of GoP Ijarah Sukuk. With just one auction held in the last quarter of FY14, market demand for these instruments remains high; the same has also resulted in higher volatility in returns.

Size of the fund has experienced a degree of variation in the outgoing fiscal year. Given that most of the fund is invested in liquid instruments, the fund’s ability to meet redemptions in a timely manner remains sound.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at 35311861-70 or fax to 35311872.




Jamal Abbas Zaidi
Deputy CEO

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