Lahore, April 18, 2019 (PPI-OT): The objective of the fund is to minimize risk, preserve capital and generate a reasonable return along with a high degree of liquidity from a portfolio primarily constituted of bank deposits and money market instruments.

The rating reflects the fund’s moderate credit quality and liquidity profile. The fund has maintained a sizeable proportion of placements with commercial banks predominantly rated in ‘AA-‘ and ‘A+’ category. At end-Dec 18, fund’s exposure with banks was ~70%, MTS was ~24% and T-Bills ~6%. The majority of the exposure was with ‘AA-‘ rated banks ~31%. The other major avenue is MTS, which due to self-liquidating nature possesses less risk over short tenure. The fund’s unit holding pattern remains adequately diversified with top 10 investors representing ~47% of the fund’s assets at the end of Dec-18.

Going forward, the fund intends to take exit from MTS whilst maintaining its investments in Government securities, cash and placements with well-rated banks. Material changes in the fund’s asset allocation strategy, which could negatively impact the fund’s credit quality and exposure to interest rate risk, remains 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: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com