Lahore, October 20, 2021 (PPI-OT):NBP Islamic Mahana Amdani Fund (or the “Fund”) is a medium risk profile fund. The Investment policy of the Fund emphasizes that a minimum of 25% of the total Fund’s assets must be invested in Riba Free Term Deposits. In line with this requirement, the Fund invests 28.72% in Riba Free term Deposits with Islamic Banks, mostly rated “A+” and above and GOP Ijarah Sukuks. Furthermore, 42.7% of the Fund’s total assets are constituted by Bank Deposits in banks mostly rated “AA+” and above.

Moreover, the Fund invests 6.8% of its assets in Government Securities. The average duration of the Fund was 49 days, which plays a role in minimizing the total exposure to interest rate risk. The Fund has a diversified unit holding pattern, where top 10 investors contribute towards 21.69% of the total Fund’s Assets. Therefore, there appears a low amount of redemption pressure. 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