December 26, 2018 (MLN): JCR-VIS Credit Rating Company Limited has reaffirmed the fund stability rating (FSR) of First Habib Cash Fund (FHCF) at ‘AA (f)’ (Double A(f)).
FHCF is an open-end money market fund; in line with its categorization, exposure to various sources of risks has been maintained at low end of the risk spectrum, both by policy and actual asset allocation.
The fund is mandated to hold assets with minimum rating of ‘AA’ and its constitutive documents also limit Weighted Average Maturity (WAM) at 90 days. Moreover, the fund has largely remained compliant with WAM guidelines during the review period.
Actual asset allocation has remained conservative with average exposure in ‘AA’ and above rated investment avenues. FHCF’s unit holding features concentration, however given the liquidity profile of assets, ability to meet redemptions is considered sound.
Net assets showcased an upward trend closing in at 2.8b (FY17: Rs. 1.04b) at end-June 2018. Subsequent to year-end, fund size stood at Rs. 2.7b as at end-November 2018.
