Pakistan Credit Rating Agency assigns Stability Rating Of ‘Aa+ (F)’ To National Fullerton Asset Management
Lahore, June 28, 2012 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has assigned a stability rating of “AA+(f)” (Double A Plus ; fund rating) to NAFA Money Market Fund (NMMF), an open-end money market fund. The fund’s rating denotes a very strong capacity to manage relative stability in returns and low exposure to risks.
The rating reflects the fund’s mandate to generate optimal returns with minimal risks, and to provide a highly liquid avenue to its unit holders by investing primarily in short-term government securities. The fund’s very low risk emanates from its investment mix, having exposure of 50% in Government securities (primarily T-Bills) at end-Apr12.
The remaining assets are deposits with banks and DFIs carrying a minimum credit rating of AA. NMMF intends to manage liquidity risk by deploying funds in multiple banks. The fund carries a duration of 57 days at end-Apr12, in order to avoid volatility arising from interest rate fluctuations. Owing to recent launch of fund (end-Feb12), the top10 unit holders account for 99% of the fund’s net assets.
The fund’s rating is dependent on maintaining a minimum exposure of 50% in Government securities with portfolio duration of less than 60 days. The remaining assets will be placed with scheduled banks having very strong credit quality.
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