Lahore, January 29, 2016 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has revised the stability rating of PIML Daily Reserve Fund (PIML DRF), an open-end money market fund, to ‘AA(f)’ (Double A; fund rating) [Previous Rating: ‘AA+’ (Double A plus)]. The fund’s rating denotes a very strong capacity to manage relative stability in returns and very low exposure to risks.
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 revised rating reflects the fund’s new investment philosophy to allocate less than 50% in Government Securities and duration of 90 days or less.
At end Dec-15, the majority of the fund’s assets (81%) were invested as cash with high rated (‘AA’ and above) commercial banks. The remainder of the assets were placed with banks (9.4%) and DFIs (9.4%). The unit holding pattern of the fund is highly concentrated with top10 investors representing almost the entire fund which exposes the fund to redemption pressure.
Going forward, the rating remains dependent on maintaining at least 25% allocation towards government securities with portfolio duration not exceeding 90 days. Meanwhile, the remaining assets of the fund must be placed with scheduled banks and DFIs having credit ratings ‘AA’ and above. PACRA would monitor compliance against agreed parameters on monthly average basis.
For more information, contact:
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
Category: General Business News