Lahore, October 11, 2021 (PPI-OT): The rating reflects strong strength of the Funds credit and interest rate risk profile. The Funds good credit quality and sound liquidity profile emanates primarily from its mandate to invest in government securities and other low duration avenues such as bank placements. As per the investment policy, the weighted average maturity of Fund shall not exceed 90 days and time to maturity of any individual asset is capped at six months. while the duration of the Fund remained 1 day, at end Jun’21. At end Jun’21, ~99.9% of funds assets were allocated to a single bank rated ‘AAA’, this gives rise to concentration risk.

Funds unit holding pattern is highly concentrated with top 10 investors representing ~90% of the net assets, which exposes the fund to high level of redemption pressure. Going forward, the fund intends to maintain the current allocation strategy. Material changes in the funds 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