Lahore, October 20, 2021 (PPI-OT):NBP Islamic Money Market Fund (or the “Fund”) is a low risk profile fund. The Investment Policy enforces a minimum requirement of 10% on the total investment in Cash and Cash equivalents. At end June’21, the Fund had invested 77.1% of the total Fund’s assets in Banks mostly rated “AA+” and above. Furthermore, short term sukuks constituted towards 9.3% of the total Fund’s assets in corporates ranked ‘AA+’. Moreover, the Fund does well to keep its average duration at 16 days (At end Jun’21) and therefore, minimizes its exposure to interest rate risk.

The unit holding pattern is adequate concentrated, with top 10 investors contributing towards 43.68% of the total Fund’s assets and therefore subjects the Fund to a moderate level of redemption pressure. However, the highly liquid nature of the Fund provides a reasonable cushion against this risk. Going forward, in accordance with the investment policy the fund intends to maintain its current asset allocation. Material changes in the fund’s asset allocation 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