The Pakistan Credit Rating Agency (PACRA) has assigned a 4-Star fund rating (Category: Balanced Fund) to BSJS Balanced Fund Limited (BBF), which reflects a good performance relative to its peer. The rating is a composite measure of two factors namely a) returns, and b) risk associated with the returns measured by the Sharp Ratio.
BBF, a closed-end fund, was incorporated in March 1994 as a public limited company and is listed on the Karachi Stock Exchange. ABAMCO Limited is acting as the company's 'investment advisor' and MCB Bank Limited as its 'custodian'.
The primary objective of BBF is to maximise the total investment return, which would consist of a combination of capital appreciation and income. The principal activity of the Fund is to make investments in marketable securities including equity and debt instruments. The equity portion of the portfolio seeks capital growth by investing in stocks that meet certain fundamental and technical standards of selection and in the opinion of the Investment Advisor, better-than-average potential for appreciation alongwith liberal dividend distribution policies.
The objective is achieved through investing in selected stocks, TFCs, reverse repo transactions, government securities and placing funds as saving and term bank deposits.
ABAMCO has an asset manager rating of 'AM2', which reflects the company's very strong capacity to manage the risks inherent in asset management. The Chief Executive of ABAMCO, Najam Ali, is a Chartered Accountant with extensive exposure to the financial sector. The Chief Investment Officer is an MBA with significant buy-side and sell-side experience in Pakistan's financial and capital markets. The fund manager of BBF is Bachelors in Commerce with more than 15 years of experience in the financial sector.