Karachi, October 07, 2010: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned Fund Stability Rating of ‘AA+(f)’ (Double A plus (f)) to IGI Money Market Fund (IGIMMF), launched by IGI Funds Limited in May 2010.

The fund seeks to generate returns consistent with its objective of investing in low-risk, short-term instruments including cash deposits, money market placements and government securities.

The rating incorporates the low-risk profile of the fund, as envisaged by the investment policy and reflected in the actual asset allocation of the fund. The fund will maintain at all times a minimum of 20% of net assets in cash. All exposures in the fund are subject to minimum rating requirement of ‘AA’. Moreover, as a money market fund, time to maturity of any asset held by the fund is capped at six months and weighted average time to maturity of net assets cannot exceed 90 days. At end-August 2010, short-term T-bills represented 85% of net assets and remaining assets were held with AA rated institutions, signifying low credit risk. Furthermore, price risk is considered low with duration of the fund at 9 days at end-August 2010.

Net assets of the fund were higher at Rs. 1.03b as at end-August 2010 in relation to the preceding month. Assets are largely deployed in liquid avenues, which facilitate the fund in meeting redemption requests. Going forward, IGIMMF’s exposure will be concentrated on short term government paper and clean placements with a strong focus on T-Bills and reverse repos against government securities.

For further information on this rating announcement, please contact Ms. Sobia Maqbool (Ext: 506) or Ms. Sabeen Saleem (Ext: 510) at 021-35311861-70 or fax to 021-35311873.


Faheem Ahmed
President & CEO

Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.JCR-VIS is not an NRSRO and its ratings are not NRSRO credit ratings. JCR-VIS is paid a fee for most rating assignments. This rating is an opinion on credit quality only and is not a recommendation to buy or sell any securities. Copyright 2010 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS Credit Rating Company Limited.