Lahore, October 11, 2021 (PPI-OT): The rating incorporates the Fund’s strong credit quality and sound liquidity profile, emanating from the Fund’s current portfolio mix. At end Jun’21, the Fund was invested ~38% in banks rated ‘A’ and above, ~38% in Government-guaranteed securities (T-Bills and PIBs) and ~12% in spread transactions. The duration of the investments is ~200 days, which lowers the risk to interest rate volatility. The unit holding pattern of the fund is low concentrated with top 10 investors representing ~44% of the Fund’s assets, which exposes the fund to moderate level of redemption pressure.

Going forward, the Fund intends to maintain its exposure in T-bills and PIBs. The remaining assets of the Fund will be invested in cash placements. Material changes in the Fund’s asset allocation strategy, which could negatively impact the Fund’s credit quality and exposure to interest rate risk, remain critical for 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