JCR-VIS Revises Fund Stability Rating of Crosby Phoenix Fund

Karachi: JCR-VIS Credit Rating Company Limited has revised the Fund Stability Rating (FSR) of Crosby Phoenix Fund (CPF) from ‘A(f)’ (Single A (f)) to ‘A-(f)’ (Single A Minus (f)).

Following the acquisition of Crosby Asset Management (Pakistan) Ltd. (CAML) by KASB Funds Limited (KFL), CPF is now under management of KFL. The revision in rating takes into account the change in investment policy of the fund, whereby exposures have been built in Margin Trading System, with maximum exposure in this avenue allowed to the extent of 40% of net assets.

Asset allocation of the fund has depicted variation overtime; with the fund assuming increasing exposure against MTS, beginning May 2011. With the underlying collateral being equities, the fund has indirect exposure to stock market. However, rating draws comfort from the risk management system implemented by National Clearing Company of Pakistan Limited. The fund has so far maintained sound asset quality, in view of which it has been able to generate superior returns vis-à-vis other funds in the peer group.

As per policy, the weighted time to maturity of the fund’s portfolio can extend up to 4 years, with this condition not applicable to government paper. There is no restriction with respect to maturity of any single instrument in the portfolio. In view of this, the fund can assume significant interest rate risk. Actual interest rate risk, as per latest data available, is much lower than this threshold. Total number of investors in the fund is very low and fund size has also remained small.

For more information, contact:
Mr. Javed Callea
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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