Lahore, September 10, 2021 (PPI-OT):Pakistan Cash Management Fund is a very low risk-profile fund. The rating reflects the Fund’s good credit quality, interest rate risk and sound liquidity profile emanating 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. The Weighted Average time to Maturity of the Fund was 1 day as at end-Jun’21, which is compliant with the investment policy. While, ~100% of Fund’s assets were placed with bank rated ‘AAA’.

The average duration of the Fund remained within 45 days. The Fund’s unit holding pattern is highly concentrated with top 10 investors representing ~80% of the net assets; however, the highly liquid nature of Fund’s assets is able to cope up the redemption pressure. Going forward, the Fund may shift its asset allocation in low tenor government securities, subject to economic and market expectations. 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