Lahore, October 01, 2021 (PPI-OT): The rating reflects the BMA Chundrigar Road Saving Fund’s (or the “Fund”) average credit quality and liquidity profile. During 2HFY21, the Fund has performed below its benchmark but better than industry average. AUMs of the Fund remained stagnant at PKR 114mln since Dec’20. At end Jun’21, the Fund was primarily invested in bank (~89%) having rating ‘A’ and above, while ~7% was invested in TFC’s. The investment policy restricts the fund to invest its assets below ‘BBB’ rated avenues. Duration of investments stood at 44 days, at Jun’21. The unit holding pattern of the fund is highly concentrated with the top 10 investors representing ~93% of the net assets. However, this risk is mitigated by related party holdings (~74%).
Going forward, the fund intends to maintain its exposure towards cash with ‘A’ rated banks. The main risk factors affecting the stability of returns are sensitivity to changes in interest rates. Material changes in the fund’s asset allocation strategy, which could further impact the fund’s credit quality and exposure to interest rate risk, remain critical for 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