Lahore, April 09, 2021 (PPI-OT): The rating reflects adequate strength of the fund’s credit and interest rate risk profile, considerable holding of cash and bank balances reinforce the liquidity profile. At end Dec’20, ~52.5% of fund’s assets were placed with banks primarily rated ‘A+’ and above, ~30% allocated to Sukuks rated ‘AA’ and above. The fund also invested ~10% of funds in government guaranteed securities. The offering document of the fund allows it to invest in banks rated ‘A-‘ and above.
The unit holding pattern of the fund is moderately concentrated with top ten investors representing ~42% of the fund’s assets, this reduces the redemption pressure and bodes well with the rating. Going forward, the fund intends to maintain its current asset allocation. 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,
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