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

Lahore, March 13, 2014 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the stability rating of IGI Income Fund (IGI-IF), an open-end 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 mandate of the fund is to earn competitive returns for its unit holders by constructing a low risk and liquid portfolio. The rating reflects the fund’s strong credit quality and sound liquidity profile emanating from sizeable allocation of assets in low risk avenues.

At end-Dec13, the portfolio comprised government securities (TBills: 22%) and debt instruments (TFCs: 18%). All TFCs were of banking companies except one which is issued by WAPDA. The remaining assets of the portfolio were invested as term placements (56%) and daily cash balances (3%) with strong quality financial institutions.

The unit holding pattern of the fund is fairly concentrated with the top10 investors representing 71% of the fund’s assets. Going forward, the fund intends to allocate assets mainly in T-bills (60%) and high rated debt instruments (20%).

The remaining net assets of the fund would be placed with good quality banks. 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

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