Pakistan Credit Rating Agency maintains stability rating of MCB Islamic Income Fund

Lahore, January 09, 2013 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the stability rating of MCB Islamic Income Fund (MCB-IIF), an open-end Shariah compliant income fund at ‘AA- (f)’ (Double A Minus ; fund rating). The fund’s rating denotes very strong capacity to manage relative stability in returns and very low exposure to risks.

The investment objective of the fund is to provide investors with high income and long term capital appreciation by investing in a portfolio of Shariah compliant investment instruments.

The rating incorporates the fund’s strong credit quality and sound liquidity profile with the fund’s policy to invest only in Shariah compliant instruments rated ‘A+’ and above. The portfolio mix of the fund at end Sep-12 is primarily invested in GoP Ijara Sukuks (73%). The remaining net assets of the fund are held as daily cash balances (24%) with banks having high credit quality.

The fund’s sizeable proportion towards low duration GoP bonds results in a modest exposure to interest rate volatility. The fund has well diversified unit holding pattern, with top10 investors representing 17% of the fund size.

The rating is dependent upon maintaining minimum of 50% exposure towards government securities with a portfolio duration of less 180 days. The remaining funds must be placed with good quality Islamic Banks.

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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