Lahore, May 30, 2018 (PPI-OT): The objective of the fund is to provide a competitive return on investment in a diversified portfolio of fixed income securities. The rating reflects the fund’s strong credit quality and good liquidity profile emanating from the sizeable allocation of assets in daily cash balances. At end-Dec 17, the portfolio comprised cash balances (78%) with the majority of exposure with ‘AA+’ rated banks. The remaining assets of the fund (i.e. 7%) were invested with TFCs and (9%) are other bank placements. The unit holding pattern of the fund is highly concentrated with the top10 investors representing ~84% of portfolio making the fund vulnerable to redemption pressure.
Going forward, the fund intends to maintain exposure in cash, some part of the investment in TFCs having good credit quality. Material changes in the fund’s asset allocation strategy, which could negatively impact the fund’s credit quality and exposure to interest rate risk, remain 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