Lahore, December 31, 2018 (PPI-OT): The objective of NIT Government Bond Fund is to generate best possible return with minimum risk, for its unit holders, by investing primarily in the government securities.
The rating reflects fund’s low risk and sound liquidity profile. At end Jun-18, the portfolio comprised bank placements of ~29% with AA+ rated banks. The remaining assets of the fund were invested with T-Bills (69%) which due to its self-liquidating nature possess less risk over the short tenure. The weighted average maturity of the portfolio stood at 20 days. The unit holding pattern of the fund is highly concentrated with top ten investors representing 78% of the fund’s assets, (of which ~42% are owned investments) which exposes the fund to low level of redemption pressure.
Going forward, the fund intends to maintain exposure in T-bill and some part of the investment in banks having good credit quality. Material changes in the fund’s asset allocation strategy, which could negatively impact the fund’s credit quality and exposure to interest rate risk, remain critical for 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: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com