Lahore, October 20, 2021 (PPI-OT):NBP Riba Free Savings Fund (or the “Fund”) is an open‐end Islamic Income Scheme with a medium level risk profile. At end Jun’21, the Fund had placed ~44.7% of assets in Bank Deposits with banks mostly rated ‘AA’ and above. The remaining funds were invested in Sukuk, GoP Ijara Sukuk and commercial papers. The unit holding pattern of the Fund is moderately concentrated, top ten investors represent ~34% of the funds assets and thus, reduces redemption pressure. The average duration of the Fund was 50 days at end Jun’21. This strengthens the Fund’s risk profile against interest rate risk.

Going forward, the fund intends to increase asset allocation with banks in low credit risk avenues (mostly in AA category and occasionally higher spectrum of A). 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