Lahore, March 11, 2023 (PPI-OT): NIT Government Bond Fund (or the ‘Fund’) is a medium risk profile Fund. The assigned rating reflects the Fund’s moderate credit risk profile emanating from Fund’s Investment policy to invest in avenues with sound liquidity.
The Fund had invested ~35% in PIBs, ~34.4% in T-Bills whereas ~29.1% in cash majority in Soneri Bank rated AA- and ~1.5% in others. The duration of the Fund stood at 36 days at the end Dec’22, limiting the exposure interest rate risk. While the WAM of the Fund stood at 224 days at the end Dec’22, exposing the Fund to high credit risk. However, major investment in Govt securities is providing comfort to the assigned rating.
The unit holding pattern of the Fund stood at 82.3%, representing top ten investor concentration. The Fund would remain exposed to redemption pressure. The Fund remained compliant with the given criteria of assigned rating by investing minimum 25% in Govt/AAA rated avenues and maximum 25% in double AA- rated avenues.
Going forward, any material changes in the investment policy would remain imperative. While compliance with the devised rating criteria for the assigned rating would remain critical.
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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