PACRA Maintains Stability Rating of 786 Smart Fund

Business News English

Lahore, October 26, 2020 (PPI-OT):The Fund’s strong credit quality and sound liquidity profile emanates primarily from its mandate to invest in low duration avenues such as cash placements in banks and ensuring low exposure to interest rate risk. At end Jun ’20, ~84% of Fund’s assets were allocated to AA rated bank placements, whereas ~13% to Sukuk/TFCs. Average duration of the Fund remained within 30 days and all investments were socially responsible. Fund’s unit holding pattern is moderately concentrated with top 10 investors representing ~80% of the net assets. This exhibits high redemption pressure.

Going forward, the Fund’s management intends to maintain its current exposure in bank placements and sukuk/TFCs. Material changes in the Fund’s asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect 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

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