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BBF gets Pacra's 'AA' mutual fund rating

RECORDER REPORT

KARACHI: The Pakistan Credit Rating Agency Ltd. (Pacra) has assigned a mutual fund rating of AA(f) (double A) to BSJS Balanced Fund Limited (BBF).

The rating denotes the ability of the Fund to consistently outperform its peers with strong capacity to respond to future opportunities or stress situations. Pacra has recently developed the rating methodology for mutual funds with the objective of providing an independent opinion on their financial strength.

The potential users of the ratings would be shareholders, rather than creditors. Accordingly, Pacra assigns a rating rather than a credit rating. The ratings should not be construed as a recommendation to purchase, sell or hold a security, in as much as they do not comment on the market price or suitability for a particular investor.

BBF's sound investment policies, which emphasise adequate diversification of revenue sources and mitigation of risk, have helped in achieving the objective of generating stable returns.

These policies have enabled it to outperform its peers in the difficult operating environment and its strong liquidity position allows it to capitalise on trading opportunities as they arise. Abamco, the investment adviser, has demonstrated the ability to manage the Fund prudently, while its management structure ensures a continuity of Fund policies.