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 placement’s. At end Jun’21, 93.8% of the Fund’s assets were allocated to banks rated ‘AA+’ and above. The offering document of the Fund allows it to invest in banks having minimum rating of ‘AA’. The duration of the Fund remained 6 days, at Jun’21.

Fund’s unit holding pattern is moderately concentrated with top 10 investors representing ~45% of the net assets, giving rise to a moderate level of redemption pressure. Going forward, the Fund intends to increase allocation towards banks placements. 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