Pakistan Credit Rating Agency assign “AAA” Capital Protection Rating to IGI Capital Protected Fund

Lahore, November 15, 2012 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has assigned a capital protection rating of ‘AAA (cp)’ Triple A (capital protection)] to IGI Capital Protected Fund (IGI CPF). It is an open-end capital protected fund launched in October 2011 with stipulated life of two years. The fund’s rating denotes exceptionally strong certainty of capital protection.

The rating reflects the fund’s mandate to place at least 80% of the total initial fund size for ensuring capital protection through investment in government securities or in the form of a bank deposit with a minimum rating of “AA-”, for a period of two years from the date of placement.

The fund’s current strategy prescribes that the capital protection would be ensured through investing in government securities. The management does not plan to change the existing investment strategy till maturity of the fund. Currently the portfolio comprises 84% of government securities (mainly PIBs and T-Bills) at end-Oct12.

Upon maturity of these securities, the funds are expected to grow, at the given interest rates, to at least 100% of the total initial fund size, net of all expenses and taxes. The remaining assets are primarily invested in commodity future contracts traded at Pakistan Mercantile Exchange and in the form of cash and bank placements.

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

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