Lahore, September 29, 2021 (PPI-OT):NBP Government Securities Savings Fund (or the ‘Fund’) is low risk‐profile fund. The assigned rating reflects moderate strength of the fund’s credit and interest rate risk profile. The investment policy holds that the minimum requirements of the fund entails that at least 70% must be invested in Government Securities. At the end of Jun’21, the total bank deposits were 41.9% of the net assets, with the banks rated ’AA+’ and above. Moreover, the fund’s PIBs consisted of 24.2%.

T‐Bills constituted 32.3% of the total assets. The WAM has been parameterized by 4 years and as of Jun’21, WAM was well within the prescribed limit at 183 days. Therefore, the credit risk of the fund appears to be mitigated successfully. Furthermore, the duration of the fund has been parameterized by a limit of 1 year and as of June’21, has done well to keep the duration with 174 days. The top 10 investors possess a concentration of 46.22% in the fund’s total assets. Therefore, the fund is subject to moderate redemption pressure.

Going forward, the Fund may increase its asset allocation towards government securities as mandated by its investment policy, depending on market situation. Material changes in the Fund’s asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.

For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com