Pakistan Credit Rating Agency Maintains Stability Rating of Askari Sovereign Cash Fund

Lahore, June 28, 2012 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the stability rating of Askari Sovereign Cash Fund (ASCF), an open-end money market fund, at “AA+(f)” (Double A plus ; fund rating). The fund’s rating denotes a very strong capacity to manage relative stability in returns and very low exposure to risks.

The rating reflects the fund’s mandate to generate consistent 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 policy of maintaining minimum exposure of 70% in securities (primarily T-Bills) issued by Government. Furthermore, to diversify the portfolio and optimize returns, the remaining portion will be in form of cash balances and deposits with scheduled banks carrying a minimum credit rating of AA.

The fund’s current portfolio mix largely comprises T-Bills (~74%) with a weighted average time to maturity of 47 days. The remaining assets are invested as term deposits (23%) and cash balances (~3%) with banks having ‘AA’ and above credit rating at end-Mar12. Moreover, the fund unit holding concentration is moderate with top10 representing 54% 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:
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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