Lahore, September 10, 2021 (PPI-OT):Alhamra Daily Dividend Fund (or the “Fund) is a medium risk-profile fund. The assigned rating reflects the adequate strength of the Fund’s credit and interest rate risk profile, considerable holding of cash and bank balances reinforce the liquidity profile. At the end-Jun’21, ~94% of the Fund’s assets were mainly placed with banks rated ‘AAA’. About 6% of Funds were invested in commercial papers rated ‘AA’. The duration of the Fund was 7 days as of end-Jun’21 and the weighted average maturity of the Fund was also low at 7 days. The unit holding pattern of the Fund is moderately concentrated with the top ten investors representing ~43% of the Fund’s assets. The benchmark of the Fund is six months of average deposit rates of three ‘A’ rated Scheduled Islamic Banks or Islamic window of Conventional Banks. The Fund outperformed the benchmark by 288 basis points in FY21.

Going forward, the Fund may maintain its asset allocation towards banks depending on economic and market expectations and the Fund will diversify the allocation among different shariah compliant instruments to address the concentration risk. 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