September 6, 2019: Pakistan Credit Rating Agency (PACRA) has assigned initial rating of ‘A (f)’ for ‘long term’ to Askari High Yield Scheme, while the outlook forecasted on the rating is ‘stable’.
As per an official press release by the agency on this occasion, the rating reflects fund's medium exposure to interest rate volatility, modest credit and liquidity profile and moderate diversification across assets.
At the end of Jun-19, fund's exposure in TFCs and Sukuks was approximately 65% in (A-) and above rated instruments, approximately 30% in cash in AA- rated bank while ~5% of the fund's assets were receivables.
According to the rating agency, the unit holding pattern of the fund showed redemption pressure over the fund as top ten investors represented approximately 80% of the fund's assets.
Moreover, the fund intended to keep its exposure levels as per above criteria. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remained critical for the rating.