Lahore, September 10, 2021 (PPI-OT):Pakistan Income Fund (or the ‘Fund’) is a medium risk-profile fund. The Fund aims to invest in the money market, debt, and fixed income instruments through active management. The rating reflects the moderate strength of the Fund’s credit and interest rate risk profile. The Weighted Average Maturity of the fund was 210 days as at end-Jun’21, which is in line with the investment policy.

The Fund had allocated ~42% of its net assets to banks rated ‘A’ and above as of end-Jun’21. While, ~21% of Fund’s assets were invested in PIBs whereas 32% of the exposure was maintained in spread transactions. The unit holding pattern of the Fund is moderate concentrated with top ten investors representing ~34% of the Fund’s assets, which subject Fund to moderate redemption pressure.

Going forward, the Fund may alter its allocation with banks and take a diversified exposure in T-Bills and spread transactions keeping in view the 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