Lahore, October 11, 2021 (PPI-OT): The rating reflects adequate strength of the Fund’s credit and interest rate risk profile. At end Jun’21, ~38% of funds assets were invested as cash placements in banks having rating ‘AA+’ and above, ~14% of funds were exposed to TFCs and Sukuks primarily rated ‘AA’ and above and ~37% in spread transactions. The offering document of the Fund allows it to invest in banks rated ‘A’ and above. The WAM of the Fund is 405 days, at Jun’21, exposing the fund to interest rate risk. The unit holding pattern of the Fund is highly concentrated with top ten investors representing ~65% of the Fund’s assets, which exposes the Fund to moderate level of redemption pressure.
Going forward, the Fund intends to take some exposure in PIBs keeping in view the authorized investment allocations and market expectations. 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