The Pakistan Credit Rating Agency (PACRA) has maintained the stability rating of First Habib Income Fund (FHIF) at 'AA- (f)' (Double A minus-fund rating), an open-end income fund. The fund's rating denotes a 'very strong capacity to manage relative stability in returns and very low exposure to risks.
The objective of the fund is to provide reasonable rate of return along with concern for safety of principal amount by investing in a diversified portfolio of T-Bills, term finance certificates (TFCs), deposits with scheduled banks and money market placements. The rating incorporates very strong credit quality of the fund's assets and a sound liquidity profile, emanating from the current asset mix, in which more than 80 percent the assets are invested in short term government securities. The remainder of the fund is invested in TFCs, TDRs and deposits with banks mainly rated 'AA' or higher. At the same time, the rating incorporates fund's moderate exposure to interest rate volatility, attributed to duration of 59 days at end-March.-PR
Comments
Comments are closed for this article.