Lahore, October 26, 2020 (PPI-OT):The rating reflects the fund’s low risk profile emanating from its portfolio allocation towards low risk avenues. At end Jun’20, ~87% of fund’s assets were allocated to Government-guaranteed T-Bills, whereas ~12% were placed with different other avenues, in order to diversify the portfolio’s revenue streams and increase NAV stability. The unit holding pattern of the fund emanates higher liquidity risk as top 10 investors represent 89% of the fund’s assets.
Going forward, the fund intends to maintain/increase its exposure to government securities, while the rating remains dependent on maintaining exposure with high credit quality financial institutions. 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:
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