Lahore, December 13, 2017 (PPI-OT):The fund’s mandate is to generate reasonable return with minimal risk by primarily investing in bonds and short-term debt securities issued by Government of Pakistan (GoP).
The rating reflects the change in the investment strategy to reduce the duration of the fund. At Sep-17, the fund’s portfolio comprises of Government Securities (~73%) and the remaining assets is exposed in Bank Balance (~27%) across AA+ rated Banks. On monthly average basis, the fund duration stood at 84 days while average exposure to Government Securities (~77%) which reflected low interest rate volatility and strong credit profile. The unit holding pattern of the fund is highly concentrated towards top 10 investors representing 76% of the fund’s assets, which exposes fund to redemption pressure. The comfort can be drawn from the liquid nature of investments.
Going forward, the rating remains dependent on maintaining at least 70% allocation towardsgovernment securities with portfolio duration not exceeding 90 days. 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