Lahore, February 28, 2019 (PPI-OT): The rating incorporates the fund’s very strong credit quality and moderate liquidity profile emanating from the fund’s strategy to invest most of its funds in government securities (PIBs). The projected asset allocation of the fund includes ~10% Bank Deposits in ‘AA-” and above rated’ banks, whilst maintaining ~90% of the funds’ AUMs in PIBs ‘AAA rated’. The projected duration of the fund would be ~700 days, resulting in high exposure to interest rate volatility. The unit holding pattern of the fund is expected to be ~50% each in institutional and retail investors.
Going forward, the fund will be maintaining its exposure in government bonds. Material changes in the fund’s asset allocation strategy, which could negatively impact the fund’s credit quality and exposure to interest rate risk, remains critical for the rating.
For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com