Lahore, October 11, 2021 (PPI-OT): The rating reflects adequate strength of the Fund’s credit and interest rate risk profile. At end Jun’21, ~51% of funds were placed with banks rated ‘AA+’ and above while ~11% invested in government guaranteed, and ~9.6% in private TFCs/sukuks. The Fund also invested in ~25.3% in PIBs. The offering document of the Fund allows it to invest in banks rated ‘AA-‘ and above.

The unit holding pattern of the Fund is moderately concentrated with top ten investors representing ~55% of the Fund’s assets, which exposes the fund to moderate level of redemption pressure. The WAM of the Fund remained 889 days, at Jun’21, exposing the Fund to interest rate volatility risk. Going forward, the Fund intends to increase its exposure in PIB’s. 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