|  | 


PACRA Upgrades Stability Rating of NBP Islamic Daily Dividend Fund

Lahore, September 29, 2022 (PPI-OT): NBP Islamic Daily Dividend Fund (or the “Fund”) is a low-risk profile fund. The assigned rating reflects strong capacity to uphold the stability of returns and respond to stress situations. The Fund adhere to meet the criteria for upgrade rating from AA to AA+. The Fund has invested ~87.7% of its net assets in banks mainly rated AAA, ~6.2% in short term Sukuks whereas 4.5% in placement with banks/DFI. The duration and the WAM both decreased to 6 days at the end Jun’22 (Dec’21: 32 days), limiting the exposure to interest rate and credit risk.

The Fund is subject to high redemption pressure due to high top 10 investor concentration, which stood at 67% at end-Jun’22. However, the highly liquid nature of the Fund provides cushion against the redemption pressure. Going forward, 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 will impact the rating.

For more information, contact:
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