Lahore, March 11, 2023 (PPI-OT): Pakistan Income Enhancement Fund or the “Fund” is a medium-risk profile fund. The assigned rating reflects the moderate strength of the Fund’s credit and interest rate risk profile. At end Dec’22, the Fund was largely invested in Government Securities with 75.2% of total assets while 19.3% was invested in TFCs/Sukuks, 3.9% in Cash at Banks and remaining was invested in others.
At end Dec’22, Weighted Average to Maturity stood at 1.4 years mainly due to investments in government securities and corporate bonds. The Duration of Fund was 47 days depicting low interest rate risks. The unit holder concentration stood at ~46.4% with low redemption risks.
Going forward, the Fund may alter its allocation with banks and take a diversified exposure in term deposits and spread transactions keeping in view the market expectations. 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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