Pakistan Credit Rating Agency Limited maintains stability rating of IGI Aggressive Income Fund

Lahore, March 13, 2014 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has mainatined the stability rating of IGI Aggressive Income Fund (IGI-AIF), an open-end aggressive income fund, at ‘A- (f)’ (Single A Minus ; fund rating). The fund’s rating denotes a strong capacity to manage relative stability in returns and low exposure to risks.

The investment mandate of the fund is to provide competitive returns to its unit holders while ensuring capital preservation, by primarily investing in fixed income securities. The rating reflects the sustained risk profile of the fund. The fund has been heavily invested in TFCs/Sukuks (above 36% on average basis over the last 4 quarters).

The remaining portfolio comprise placements with financial institutions. These TFCs have been of good quality though they remain susceptible to challenges in economic environment. The main risk factor emanates from 15% un-rated portfolio.

Moreover, the unit holding pattern of the fund is highly concentrated with top10 investors representing almost the entire net assets of the fund. Going forward, the fund intends to maintain its exposure to TFCs/Sukuks of ~30%. The rating of the fund remains contingent upon averting deterioration in the credit quality of the fund and volatility in prices of TFCs amidst uncertain economic environment.

For more information, contact:
Hammad Rashid
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