Lahore, October 20, 2021 (PPI-OT):NBP Savings Fund (or the “Fund”) is a medium risk profile fund. The objective of the Fund is to earn a competitive rate of return while preserving capital to the extent possible by investing in liquid assets. The performance benchmark of the Fund for the period of return shall be the 6‐Month KIBOR. The placement of assets in Cash and near cash instruments which include cash in bank account (excluding TDRs), government securities shall not exceed 90 days maturity and will be in higher of the ‘A’ spectrum.

The credit risk is expected to remain on the lower side. At the same time, the fund policy dictates higher allocation to liquid avenues. This enhances the liquidity profile of the fund. At end Jun’21, the Fund had invested 92.5% of the total assets in Bank Deposits with banks mostly rated ‘AA’ and above. The Fund also had an exposure of 6.6% in MTS.

The unit holding pattern of the fund is highly concentrated, top ten investors represent 80.32% of the Funds assets which increases the redemption pressure. The average duration of the Fund is at 4 days and as such, the Fund minimizes its exposure to interest rate risk. Going forward, the fund intends to maintain its allocation in higher rated banks. Material changes in the fund’s asset allocation strategy, impacting its credit quality, will effect 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