PACRA Assigns Initial Stability Rating to Askari Islamic Income Fund

Lahore, March 06, 2019 (PPI-OT): The objective of the Fund is to provide investors a Shariah compliant product with stable halal income. The fund would target on capitalizing available opportunities in the Shariah compliant income generating instruments. The Fund will focus on superior quality portfolio compared with average portfolio quality of Islamic income funds in the industry and enhanced returns over a 3 month horizon.

At end Dec’18, fund’s exposure in corporate Sukuks was ~57% rated ‘AA’ and ‘A’. The fund has ~40% investments as cash balances with banks having minimum of A- rating. The assigned rating takes into account the fund’s overall risk appetite which exposes the fund towards a medium level of risk. The unit holding pattern of the fund shows redemption pressure over the fund as top ten investors represents 80% of fund assets.

Going forward, the fund intends to keep its exposure levels as per above criteria. 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:
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