PACRA Maintains Stability Rating of Pakistan Cash Management Fund

Lahore, March 12, 2021 (PPI-OT): 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 time to maturity of any single instrument is limited to 6 months, while the weighted average time to maturity of the portfolio must not exceed 90 days. At end-Dec’20, ~100% of fund’s assets were placed with bank rated ‘AAA’.

Average duration of the fund remained within 45 days. Fund’s unit holding pattern is highly concentrated with top 10 investors representing ~95% of the net assets; however, the highly liquid nature of fund’s assets may provide relief in catering the redemption pressure. Going forward, the fund intends to shift its asset allocation in T-Bills. 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

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