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

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

The investment objective of the fund is to provide investors with reasonable rate of return along with long term capital appreciation by investing in a diversified portfolio of Shariah compliant investment instruments.

The strong credit quality of the fund’s assets along with a robust liquidity profile emanates from a sizeable investment in GoP Bonds (56%), at end-Dec13. The remaining portfolio was dominated by daily cash balances with banks (31%) with rest of the assets invested in Sukuks (12%).

Meanwhile, the rating incorporates the fund’s low exposure to interest rate volatility emanating from an average portfolio duration of 68 days over latest 4 quarters. The highly concentrated unit holding pattern, with top10 investors representing almost the entire assets of the fund.

Going forward, the management intends to maintain the current investment strategy. Material changes in the fund’s asset allocation strategy, which could negatively impact the fund’s credit quality and exposure to interest rate risk, remain critical for the rating.

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