Lahore, April 20, 2022 (PPI-OT):NBP Income Opportunity Fund (or the “Fund”) is a medium-risk profile fund. The Fund aims to maximum possible preservation of capital and a reasonable rate of return via investing primarily in money market and debt securities having good credit rating and liquidity. During CY21, the Fund on average invested ~54% of net assets in Banks. The average allocation towards ‘AA-‘ and above rated securities remained ~54% during CY21. At end-Dec’21, the Fund had invested ~80% of net assets in ‘A+’ and higher-rated banks. Whereas, ~12% of the net assets are invested TFCs/Sukuks rated ‘AA’ and higher.

The duration remained at 19 days on average throughout CY21. The duration of the Fund stood at 15 days reflecting relative immunity from interest rate risk. Whereas, the WAM of the Fund is a bit higher at 141 days due to investment in high-tenor corporate Sukuks. The average WAM was 197 days during CY21. The Fund has an impressive liquidity profile due to its substantial fund size and a moderate level of top 10 investor concentration, which stood at 36% at end-Dec’21.

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 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