JCR-VIS Reaffirms Fund Stability Rating of Faysal Money Market Fund

Karachi: JCR-VIS Credit Rating Company Limited has reaffirmed the fund stability rating (FSR) of Faysal Money Market Fund (FMMF) at ‘AA+(f)’ (Double A Plus(f)).

The rating incorporates the low susceptibility of the fund’s NAV to credit and market risk, owing to conservative exposure limits of the fund as put forward by the investment policy of the fund and also reflected in actual asset allocation. As per the investment policy of the fund, at least 50% of net assets will be invested in ‘AAA’ rated exposures and remaining exposures can be invested in instruments/entities with minimum rating of ‘AA’, with the caveat that the holding in ‘AA’ rated exposures will not exceed 30% of net assets. Moreover, maximum limit for duration of the fund has been revised downwards to 60 days. At end-Feb’12, exposure in AAA rated exposures comprised 67% of total assets. Exposure in ‘AA+’ and ‘AA’ rated exposure comprised 10% and 18% of total assets, respectively. Weighted average maturity of the fund was 51 days at end-Feb’12.

Top ten investors had significant holding in outstanding units at end-December 2012 depicting high investor concentration, with 53.4% of outstanding units held by Faysal Bank Limited, an associated concern. However, as the fund is mostly invested in liquid avenues, the ability to meet redemptions in a timely manner is considered sound.

For more information, contact:
Mr. Javed Callea
Advisor
JCR-VIS Credit Rating Company Limited
Tel: +9221 35311861 (10 lines) (Ext: 501)
Fax: +9221 35311872-3
E mail: javed.callea@jcrvis.com.pk

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