AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Lahore, September 30, 2023 (PPI-OT): NBP Government Securities Savings Fund (or the “Fund”) is a moderate-profile fund. The objective of the Fund is to provide a competitive return from a portfolio of low credit risk by investing primarily in Government Securities. The assigned rating reflects the Fund’s moderate credit and interest rate risk profile emanating from its medium risk investment strategy. At the end of Jun’23, the Fund had allocated ~63.7% in PIBs and ~35.3% in mainly AA- and above rated banks. The WAM of the Fund stood at 245 days at the end of Jun’23, exposing the Fund to high credit risk. The duration of the Fund stood at 36 days at the end of Jun’23, limiting the exposure to interest rate risk. However, credit risk is manageable due to investment in PIBs. The unit holding pattern of the Fund stood at ~57.55% at the end of Jun’23, representing top ten investor concentration; exposing the Fund to redemption pressure.
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
The post PACRA Maintains Stability Rating of NBP Government Securities Savings Fund appeared first on Pakistan Business News.