Lahore, October 11, 2021 (PPI-OT): The rating reflects the adequate strength of the Funds credit and interest rate risk profile. At end Jun’21, ~38% of funds were placed in banks rated ‘AA+’ and above, ~36% invested in TFCs/Sukuks primarily rated ‘A+’ and above and ~12% in Ijarah sukuks. The offering document of the fund allows it to invest in banks rated ‘A-‘ and above. The WAM of the Fund remained 805 days, at Jun’21, exposing the Fund to interest rate volatility risk.

The unit holding pattern of the Fund is highly concentrated with top ten investors representing ~81% of the Fund’s assets, from which ~57% are related parties, which lowers the redemption pressure. Going forward, the Fund intends to maintain its asset allocation in government securities and CPs. 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: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com