Pakistan Credit Rating Agency Limited maintains stability rating of NAFA Islamic Aggressive Income Fund

Lahore, February 16, 2016 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the stability rating of NAFA Islamic Aggressive Income Fund (NIAIF), an open-end Islamic aggressive income fund, at ‘A- (f)’ (Single A minus; fund rating). The fund’s rating denotes a strong capacity to manage relative stability in returns and low exposure to risks.

The investment objective of the fund is to earn reasonable rate of return for its unit holders by constructing a portfolio primarily invested in Shariah compliant money market and debt securities. Currently, the fund’s exposure comprises bank placements (~88%) with sizeable investments in ‘A-‘ rated banks (10%), investments in good quality debt instruments (3.6%) and Shariah compliant government securities (7%) at end-Dec15. The unit holding pattern of the fund is concentrated with top10 investors representing 51% of the fund’s net assets at Dec-15.

The fund intends to maintain its allocation towards bank placements (50%). The remaining assets will be invested in Shariah compliant government securities and good quality debt instruments. 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