VIS Reaffirms ‘AA+’ Rating for Askari Cash Fund

Karachi: VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating of the Askari Cash Fund at ‘AA+(f)’, indicating a high degree of stability in the fund’s net asset value. The fund, managed by Pak Oman Asset Management Company Limited, aims to provide investors with high liquidity and low volatility, primarily through investments in government securities.

According to VIS Credit Rating Company Limited, the Askari Cash Fund experienced a contraction in its fund size during the fiscal year 2024. Despite this, the asset allocation largely adhered to the fund’s mandate, although there were instances of non-compliance with the minimum cash exposure limit. The fund’s investments were predominantly in Treasury Bills, with additional exposure in cash, aligning with the credit quality benchmarks specified for its ‘AA+’ rating.

The fund’s weighted average time to maturity remained below the maximum threshold, with a sound liquidity profile supported by investments in liquid assets. The assets under management are mainly dominated by corporate investors, with a significant portion also held by associates and retail investors. Despite a high client concentration risk, the fund’s annualized return outperformed both its benchmark return and peer average, placing it in the second quartile.

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