Lahore, March 11, 2023 (PPI-OT): MCB Pakistan Sovereign Fund (or the ‘Fund’) is a medium risk-profile fund. The assigned rating reflects the strong strength of the Fund’s credit risk profile and moderate strength of the interest rate risk profile.
At end-Dec’22, largely the portfolio was invested in Government Securities with 94.9%, 2% in Cash at Banks while remaining was invested in others. The Fund’s weighted average to maturity was 3 years at end-Dec’22 mainly due to investments in government securities. However, the Duration stood at 33 days shielding the Fund against interest rate risks. The unit holding pattern of the Fund is moderately concentrated with top ten investors representing 54.8% of the Fund’s assets, which exposes the Fund to a moderate level of redemption pressure.
Going forward, the Fund intends to maintain its asset allocation in government securities and banks, however, the allocations may be changed based on market circumstances. Material changes in the Fund’s asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com
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