Press Release

VIS Reaffirms Fund Stability Rating of Al-Ameen Islamic Aggressive Income Fund

Karachi, December 29, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of Al-Ameen Islamic Aggressive Income Fund (AIAIF) at ‘A+ (f)’ (Single A Plus (f)). The medium to long-term rating denotes moderate degree of stability in NAV. Risk factors may vary with possible changes in the economy. Previous rating action was announced on January 13, 2022.

AIAIF has an objective to provide its investors with long-term risk adjusted returns through investments in medium to long-term Shariah Compliant income instruments and short-term money market securities in Pakistan. Net assets of the funds increased to Rs. 848m (FY21: Rs. 375m) at end-FY22. As per Funds Investment Policy, duration is capped at 1.25 years while exposures are capped at 15% for ‘A’ rated investment avenues.

During FY22, the fund’s asset allocation was in compliance with the requirements specified in the Offering Document (OD) with majority of fund’s holding engrossed in cash. The fund’s credit quality remained in line with the operational strategy outlined by the management barring five months in FY22 where exposure in A rated placements were reported higher than 25%, non-complying VIS rating criteria. Nevertheless, on average, exposures below ‘A+’ remained in line with benchmarks for assigned rating. Maintaining asset allocation and credit quality in line with the benchmarks for assigned rating will remain important.

Weighted Asset Maturity (WAM) and modified duration have remained compliant within the specified limit as per assigned ratings. Fund performance depicted an improvement with the fund over performing its benchmark in FY22. Given 80% liquid asset composition of the portfolio, liquidity risk remains on the lower side. Top 10 investor concentration risk of the fund is also considered modest with the same comprising 27% of the asset base at end-FY22. Ratings are sensitive to breaches against benchmarks of credit quality for the assigned ratings observed during the review period.

For further information on this rating announcement, please contact Ms. Asfia Aziz (Ext: 212) or the undersigned (Ext: 201) at 35311861-70 or email at info@vis.com.pk




Javed Callea
Advisor

Applicable rating criteria: Fund Stability Ratings (December 2020)
https://docs.vis.com.pk/docs/FundstabilityRating.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .