Lahore, October 20, 2021 (PPI-OT):The assigned rating reflects the Fund’s moderate credit risk and interest rate risk profile emanating from its investment strategy to invest in adequate credit quality and longer duration investment avenues having sound liquidity. The Fund had placed 44.3% of assets as daily product with banks mostly rated ‘AAA’. 23% of the total assets were invested as term deposits with banks rated ‘AAA’ (10%) and ‘A+’ (13%). Remaining assets of the Fund were invested with Sukuks and Commercial Paper rated AA and AA+ respectively. The Fund’s investment policy (IP) allows the fund to take 100% exposure in ‘A‐’ rated investment avenues of up to 90 days maturity.

The Fund shall place minimum 25% of assets in Riba free accounts of Islamic banks. This is expected to allow the Fund to maintain a strong liquidity profile. The average duration of the Fund remained at 36 days, at end Jun’21 which protects the Fund from exposure against interest rate risk. Going forward, 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