AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Lahore, December 28, 2018 (PPI-OT): The objective of the fund is to generate consistent returns with minimal risk by investing primarily in Government Securities, cash and near cash instruments. The rating incorporates the fund’s good credit quality and sound liquidity profile, emanating from the fund’s current portfolio mix. At the end of Jun-18, fund’s exposure with banks was ~86% with the majority of exposure in ‘A-‘ rated banks.
The remaining ~9% assets of the fund were invested in TFCs/sukuks with the credit rating of ‘A+’ and above. The unit holding pattern of the fund is highly concentrated with top 10 investors representing ~61% of the fund’s assets, (of which ~19% are owned investments) which exposes the fund to a low level of redemption pressure. The comfort can be drawn from the liquid nature of investments.
Going forward, the fund intends to increase its exposure towards short-term placements and cash at the bank. The remaining assets of the fund will be placed in short duration Government Securities/instruments. This practice is mainly done by the management to protect the fund from downside risk in case of an interest rate hike in upcoming monetary policies due to the current rising interest rate scenario.
For more information, contact:
Analyst
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
Email: hammad.rashid@pacra.com
Web: www.pacra.com