Karachi, December 29, 2010: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned Fund Stability Rating of ‘A+(f)’ (Single A Plus (f)) to IGI Income Fund (IGIIF).

Managed by IGI Funds Limited, IGIIF seeks to generate returns consistent with its objective of minimizing risk by constructing a liquid portfolio of fixed income instruments. As per the investment policy, the fund may invest up to 40% of net assets in TFCs while the remaining exposures are to primarily comprise short term government securities and bank deposits. As per the functional policy of the fund, the minimum credit rating criterion for counterparties has been raised to ‘AA-’ (Double A Minus). Furthermore, eligible collateral for reverse repo transactions is also restricted to government securities and highly rated sub-debt instruments issued by commercial banks.

Investment style has mostly remained conservative, as reflected by the actual asset allocation of the fund. Current exposure in TFCs is limited, though it may be enhanced to some extent going forward. Investment portfolio is managed largely in line with the functional policy. Overall credit risk profile of the fund is considered sound.

For investment in government securities, time to maturity of the instruments is currently capped at 6 months. In addition to this, the fund only invests in floating rate TFCs to maintain interest rate risk at low levels. Investor base features concentration and the fund may benefit from greater diversification. Ability to meet redemptions is considered strong given the liquidity profile of assets.

For further information on this rating announcement, please contact Ms. Sobia Maqbool, CFA (Ext: 506) or Ms. Sabeen Saleem, CFA (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.