Lahore, March 06, 2023 (PPI-OT): The rating reflects the fund’s moderate credit risk profile emanating from its investment strategy to invest in good credit quality investment avenues with sound liquidity. At end Dec’22, 38% of the Fund’s assets were allocated to Cash at banks that are ‘A+’ rated and above, 34.3% to Sukuks, 25.8% in Commercial Papers / Short Term Sukuks, whereas 1.9% were others. As per the investment policy, the Fund can invest up to 75% in sukuks, the current strategy is in line with the investment policy.
The net assets of the Fund have shown a decrease of 1% and stood at PKR 884mln (Jun’22: PKR 893mln). The Fund consistently managed to stabilize the returns during CY22 and beat the benchmark along with industry average. The unit holding pattern of the fund emanates moderate redemption risk as top 10 investors represent 57.5% of the fund’s assets.
As at end Dec’22, the WAM of the Fund was reported at 371 days primarily, due to investments in sukuks. The duration of the fund is within range at 55 days representing low interest rate risk. Going forward, the fund intends to maintain its current exposure in Cash and Sukuks. 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: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com
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