Lahore, October 20, 2021 (PPI-OT):NBP Islamic Daily Dividend Fund (or the “Fund”) is a low risk profile fund. The Investment Policy states that a minimum of 10% must be invested in Cash and Cash Equivalents. At end Jun’21, the total cash balances placed at Banks rated mostly ‘AA’ and above were 85.96% and hence, the Fund is in line with it’s Investment Policy. Furthermore, the Fund’s total assets were divided with a percentage of 12.9% in Commercial Paper with entities rated ‘AA’. The duration of the Fund was 11 days, at end Jun’21.

This minimizes the Fund’s exposure to interest rate risk. At end Jun’21 The unit holding pattern of the Fund is high with the top 10 investors contributing 72.61% of the total assets. This results in higher redemption pressure but the risk is mitigated due to the highly liquid nature of the Fund. Going forward, the fund intends to maintain its current asset allocation. Material changes in the fund’s asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk will impact 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