JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned preliminary Fund Stability Rating of 'AA+(f)' (Double A plus (f)) to Picic Cash Fund (Picic-CF). Picic-CF is an open-end money market fund proposed to be launched by PICIC Asset Management Company Limited with an objective to provide competitive returns to its investors through active investments in low risk portfolio of short duration while maintaining high liquidity.
The fund aims at preserving capital while maximising returns for investors. The rating takes into account investment policy of the fund according to which the fund aims at investing in Market Treasury Bills; Term Deposits; Money Market Placements and Reverse Repos against government securities. All investments will be made in instruments/entities rated 'AA' and above with minimum of 65 percent of the funds to be deployed in instruments rated 'AA+' and above including minimum of 40 percent to be invested in government securities.
Moreover, overall exposure against DFIs has also been curtailed at maximum of 25 percent of fund size. The rating will be finalised after successful launch of the fund and performance of the fund will be monitored thereafter against the stated benchmark, which is average of three-month deposit rates of 'AA' and above rated scheduled banks.-PR
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