Lahore, December 29, 2020 (PPI-OT): The rating reflects the fund’s average credit quality and liquidity profile. At end Jun’20, the fund is invested in bank (91.95%), while the rest is invested in TFC’s. The Bank placements are made in A- rated banks, which has impacted the rating of the Fund. The unit holding pattern of the fund is highly concentrated with the top 10 investors representing ~91% of the net assets. However, this risk is mitigated by related party investments (~46%).
Going forward, the fund intends to maintain its exposure towards cash with A- rated banks. The main risk factors affecting the stability of returns are sensitivity of government securities to changes in interest rates. Material changes in the fund’s asset allocation strategy, which could further impact the fund’s credit quality and exposure to interest rate risk, remain critical for the rating.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
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