Lahore, October 20, 2021 (PPI-OT):The rating reflects the funds strong credit and interest rate risk profile. The Fund’s 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 and ensuring low exposure to interest rate risk. At end Jun’21, ~97% of fund’s assets were allocated to banks rated ‘AA’ and above, remaining funds were invested in commercial papers rated ‘AA’. Funds unit holding pattern is highly concentrated with top 10 investors representing ~78% of the net assets, which exposes the Fund to high level of redemption pressure.

Going forward, the Fund intends to take some exposure in T-Bills based on their investment strategy and market expectations. 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