Lahore, September 30, 2023 (PPI-OT): NBP Islamic Daily Dividend Fund (or the “Fund) is a low-risk profile fund. The objective of the Fund is to provide competitive return along with daily dividend by investing in shariah-compliant money market instruments. The assigned rating reflects the Fund’s strong credit and interest rate risk profile emanating from its low risk investment strategy. The Fund had invested ~89% of cash in bank deposits and placements mainly AA+ and above and ~9.86% in AA and above rated Corporate Sukuk at the end of Jun’23. The duration and WAM of the Fund stood at 21 days at the end of Jun’23, exposing the Fund to low credit risk and interest rate risk.
The WAM of the Fund cannot exceed 90 days, thereby providing liquidity along with a high-quality credit profile. The unit holding pattern of the Fund stood at ~52.66%, representing the top ten investor concentration exposing the Fund to low redemption pressure. However, the ability to meet redemption remained sound on the back of strong liquid profile. During FY23, the Fund remained compliant with the credit quality criteria barring a minor deviation in two months. The Fund’s performance during FY23 beat the benchmark and gave an annualized return of 16.9%.
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. Risk may vary slightly from time to time considering the volatility of economic conditions.
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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