Pakistan Credit Rating Agency maintains Capital Protection Rating of JS Principal Secure Fund-I


Lahore: The Pakistan Credit Rating Agency (PACRA) has maintained the capital protection rating of JS Principal Secure Fund-I (JSPSF-I) at ‘AA(cp)’ [Double A (capital protection)]. It is an open-end capital protected fund launched in April 2009 with stipulated life of three years. The fund’s rating denotes very strong certainty of capital protection.

The rating reflects the fund’s mandate to place 69.09% of the total initial fund size in the form of a term deposit with Bank Alfalah Limited, for a period of three years from the date of placement. The bank has a long-term rating of “AA” by PACRA. The profit rates are fixed for the tenure of the placement, thus eliminating risk of downward adjustment in interest rate as well as reinvestment risk. Upon maturity of the placement (end-Jun12), these funds are expected to grow, at the stipulated interest rates, to at least 100% of the total initial fund size, net of all expenses and taxes. The initially placed fund amount has grown up to 87.84% at end Apr11.

The current composition of the fund is dominated by term deposits with, 99.48% being placed with Bank Alfalah. The fund has outperformed its benchmark with an YTD return of 19.90% at end-May11, mainly attributed to a significant redemption at the beginning of FY11, resulting in a sizeable back-end load. The total fund size stands at PKR984.98mln at end-May11

For more information, contact:
Hammad Rashid
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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