March 8, 2019 (MLN): Pakistan Credit Rating Agency has assigned initial stability rating of ‘A(f)’ to Askari High Yield Scheme. The objective of the fund is to provide investors an opportunity to make competitive returns from fixed income securities while targeting a portfolio duration of six months.
The rating reflects the fund's medium exposure to interest rate volatility, modest credit and low liquidity profile and moderate diversification across assets. At end Dec’18, fund's exposure in TFCs and Sukuks was ~78%, ~19% in cash having minimum of A- rating. While ~3% of the fund's assets were receivables. The unit holding pattern of the fund shows redemption pressure over the fund as top ten investors represents ~80% of the fund's assets.
Going forward, the fund intends 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, remain critical for the rating.
