Lahore, October 20, 2020 (PPI-OT):The rating reflects the adequate strength of the fund’s credit and interest rate risk profile. As per the investment policy, the fund shall invest at least 25% of the Net Assets in cash and near cash instruments and Shariah Compliant Government Securities not exceeding 90 days to maturity. This enhances the liquidity profile of the fund. At end Jun’20, ~40% of fund’s assets were placed with banks rated ‘AA’, while ~44% of the assets were allocated to Sukuks rated ‘AA’ and above. ~12% of funds were invested in commercial papers rated ‘AA+’ and above. The unit holding pattern of the fund is moderately concentrated with top ten investors representing ~36% of the fund’s assets.
Going forward, the fund intends to maintain its asset allocation towards higher rated banks and corporate 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: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com