Lahore, March 28, 2023 (PPI-OT): NBP Financial Sector Income Fund (or the Fund) is a medium-risk profile fund. The assigned rating reflects the Fund’s moderate credit and interest rate risk profile emanating from its investment strategy. The Fund had invested 78.1% in bank majority in AA- rated bank, ~6.4% in TFC/Sukuks rated AA and above, ~4% in placement NBFI rated AA- whereas ~2% in T-Bills and ~8.2% in others at the end Dec’22.
The duration of the Fund stood at 8 days at the end Dec’22, limiting the exposure to interest rate risk. The WAM of the Fund stood at 89 days at the end Dec’22, exposing moderate credit risk due to investment in long term sukuks. The unit holding pattern of the Fund stood at ~58.7% representing the top ten investor concentration. Going forward, any Material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the ratings.
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
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