Lahore, September 08, 2020 (PPI-OT): The rating reflects the fund’s strong credit quality and a sound liquidity profile emanating from the fund’s policy to invest 70% of asset in a mix of short-term and long-term government securities. At end Jun’20, ~22% of the fund’s exposure was in Term Finance Certificates (TFCs), ~25% of the fund exposure was in PIBs and ~40% was maintained in T-Bills. The unit holding pattern of the fund is concentrated with top ten investors representing 100% of the fund’s assets, of which ~99% are own investments which reduces redemption pressure.
Going forward, the rating remains dependent on maintaining at least 70% allocation towards government securities with portfolio duration not exceeding 2 years. 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:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425