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JCR-VIS sets "positive" outlook to PICIC Asset Management MQ rating.

BANKING AND CREDIT NEWS-1 June 2010-JCR-VIS sets "positive" outlook to PICIC Asset Management MQ rating(C)1994-2010 M2 COMMUNICATIONS

1 June 2010 - Pakistani JCR-VIS Credit Rating Company said it assigned a "positive" outlook to the AM3 management quality (MQ) rating on local PICIC Asset Management Company Ltd (PICIC AMC).

The rating action takes into account steps taken by the company towards further improvement in the investment mix of funds through added focus on liquid and blue-chip scrips while also focusing on enhancing the management resource in view of the expected launch of open-end fixed income funds going forward. The successful launch of the PICIC Income Fund (PICIC-IF), the performance of open-end and closed-end funds with regard to peers/benchmarks and the ability to develop a diversified investor base may lead to an upward revision of the rating going forward.

JCR-VIS also assigned a preliminary fund stability rating of A+(f) to PICIC-IF. PICIC-IF is an open-end income fund proposed to be launched by PICIC AMC with an objective to provide consistent returns to its investors through active investments in a blend of short-, medium- and long-term debt instruments. The fund will aim to preserve capital while maximisng returns generated through investments in government securities, debt instruments, bank placements, including term deposits, money market instruments and reverse repurchase transactions. In order to mitigate the liquidity risk, the fund will invest a minimum of 25% in cash and near-cash securities including short-term government securities. Cognizant of the prevailing economic scenario and credit crunch in the market, the management has also restricted itself to invest in fixed investment instruments carrying a minimum rating of A+. The rating will be finalised after the successful launch of the fund and the performance of the fund will be monitored thereafter against the stated benchmark, which is six-month Kibor.

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Publication:M2 Banking & Credit News (BCN)
Date:Jun 1, 2010
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