Lahore, October 11, 2021 (PPI-OT): The rating reflects the Fund’s adequate credit risk profile emanating from its asset allocation, of which ~43% invested in cash placements in banks having rating ‘A+’ and above, ~28% were invested in TFCs/sukuks having rating ‘A+’ and above, whereas remaining funds invested in commercial papers and GOP ijarah sukuks. The offering document of the Fund allows it to invest in banks rated ‘A’ and above.

The WAM of the Fund remained 743 days, at Jun’21, which exposes the Fund to interest rate risk. The unit holding pattern of the Fund is concentrated with the top 10 investors representing ~40% of portfolio keeping the redemption pressure to moderate level. Going forward, the Fund intends to maintain its current asset allocation. 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