NBP INCOME OPPORTUNITY FUND (NIOF)

MONTHLY REPORT (MUFAP's Recommended Format) December 2020

Unit Price (31/12/2020): Rs.11.2023
Performance %
FYTD - Rolling 12 FY - FY - FY - FY - FY - Last 3 Last 5 Last 10 Since Launch
Performance Period Dec-2020 April 21, 2006*
2021 Months 2020 2019 2018 2017 2016 Years* Years* Years*

NBP INCOME OPPORTUNITY FUND 8.6% 8.3% 11.5% 13.3% 9.2% 5.3% 6.3% 7.5% 9.8% 8.3% 8.7% 8.4%

BENCHMARK 7.3% 7.2% 9.0% 12.2% 10.2% 6.3% 6.1% 6.5% 9.8% 8.3% 9.3% 10.1%

* Annualized Return Based on Morning Star Methodology. All other returns are Annualized Simple Return.
The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable.

General Information Investment Objective

Launch Date: April 21, 2006 To seek maximum possible preservation of capital and a reasonable rate of return via
Fund Size: Rs. 6,888 millions investing primarily in money market & debt securities having good credit rating and
Type: Open-end - Income Fund liquidity.
Dealing Days: Daily – Monday to Friday Fund Manager Commentary
Dealing Time: (Monday - Thursday) 9:00 A.M to 5:00 P.M (Friday) The Fund posted an annualized return of 8.6% p.a. in December 2020 versus the
9:00 A.M to 5:30 P.M Benchmark return of 7.3% p.a. The reported return is net of management fee and all
Settlement: 2-3 business days other expenses.
Pricing Mechanism: Forward Pricing
Load: Front End Load (Individual with takaful coverage): The weighted average time to maturity of the Fund is around 0.9 year. The Fund's
Amount upto Rs.5 million: 3%, Amount over and sector allocation is fairly diversified with exposure to Banking, Financial Service, Textile
above Rs.5 million and up to Rs.25 million: 1%, Composite, Sugar & Allied Industries and Power Generation & Distribution. TFC
Amount exceeding Rs.25 million, load will be portfolio of the Fund is predominantly floating rate linked to KIBOR. However, since
charged on Rs.5 million: 3% Front End TFCs prices may go up or down, therefore, only investors with medium-term
Load(others): 1% (Nil if amount greater than 25 investment horizon are advised to invest in this Fund.
million), Back end Load: 0%
We will rebalance the allocation of the Fund proactively based on the capital market
Management Fee: 6% of Net Income (min: 0.5% p.a., max: 1.0% p.a.) outlook.
w.e.f 12-July-19. 0.63% p.a. of average net assets
during the month Credit Quality of the Portfolio as of December 31 , 2020 (% of Total Assets)
Total Expense Ratio: 2.12% p.a (including 0.27% government levies)
Government Securities (AAA rated) 2.7%
Selling & Marketing Expenses: 0.70% p.a. AAA 18.7%
Risk Profile / Risk of principal Medium / Principal at medium risk AA+ 14.4%
erosion: AA 2.2%
Fund Stability Rating: "A(f)" by PACRA
AA- 7.5%
Listing: Pakistan Stock Exchange
Custodian & Trustee: Central Depository Company (CDC) A+ 10.8%
Auditors: A. F. Ferguson & Co., Chartered Accountants A 18.6%
Benchmark: 6-Month KIBOR A- 0.6%
Fund Manager: Muhammad Ali Bhabha, CFA, FRM BBB+ 2.0%
Minimum: Growth Unit: Rs. 10,000/- CFS / MTS 5.5%
Subscription: Income Unit: Rs. 100,000/- Unrated 0.1%
Asset Manager Rating: AM1 by PACRA (Very High Quality) Others including Receivables 1.4%
Asset Allocation (% of Total Assets) 31-Dec-20 30-Nov-20 RFS 15.5%
Cash 47.8% 30.5% Total 100%
TFCs / Sukuk 26.5% 31.7%
T-Bills 2.7% 16.4%
Commercial Papers 0.6% 0.7% Details of Non-Compliant Investments
CFS / MTS 5.5% 0.2% Value of Value of
Type of % of % of
RFS 15.5% 9.3% Investments Provision Investments
Particulars Investment Net Gross
before held after
Others including Receivables 1.4% 11.2% Provision
Assets Assets
Total 100.0% 100.0% AgriTech Limited I - Revised II 29-
TFC 149,860,200 149,860,200 0 0.0% 0.0%
NOV-07 29-NOV-25
Leverage Nil Nil Dewan Cement Limited (Pre-IPO)
Pre IPO TFC 150,000,000 150,000,000 0 0.0% 0.0%
17-JAN-08 17-JAN-22
Azgard Nine Limited V (PPTFC
Fixed Rate TFCs 82,180,000 82,180,000 0 0.0% 0.0%
Markup) 31-MAR-12 31-MAR-
Eden House Limited - Sukuk
Top TFC (as at December 31 , 2020) (% of Total Assets) Revised 29-MAR-08 29-SEP-25
Sukkuk 9,056,250 9,056,250 0 0.0% 0.0%
AgriTech Limited V 01-JUL-11 01-
KE Suk 03-AUG-20 03-AUG-27 5.6% JAN-25
TFC 32,320,000 32,320,000 0 0.0% 0.0%
New Allied Electronics Limited II -
JS Bank Limited 14-DEC-16 14-DEC-23 4.1% Sukuk 03-DEC-07 03-DEC-
Sukkuk 44,148,934 44,148,934 0 0.0% 0.0%
Worldcall RS - III 10-APR-18 20-
Hub Power Holding Limited 12-NOV-20 12-NOV-25 2.3% SEP-26
TFC 74,976,975 74,976,975 0 0.0% 0.0%
PACE Pakistan Limited - Revised
Dawood Hercules Corp Ltd 16-NOV-17 16-NOV-22 2.1% 15-FEB-08 15-FEB-22
TFC 149,820,000 149,820,000 0 0.0% 0.0%
Azgard Nine Limited III (PP) -
Bank of Punjab Limited 23-APR-18 23-APR-28 2.0% Revised 04-DEC-07 04-DEC-
TFC 108,376,850 108,376,850 0 0.0% 0.0%
New Allied Electronics Limited
Jahangir Siddiqui and Company Ltd. 06-MAR-18 06-MAR-23 1.7% (PP) 15-MAY-07 15-NOV-22
TFC 31,706,536 31,706,536 0 0.0% 0.0%
Saudi Pak Leasing Company
HUBCO Suk-2 Rev 22-AUG-19 22-AUG-23 1.4% Limited - Revised II 13-MAR-
TFC 41,321,115 41,321,115 0 0.0% 0.0%
Azgard Nine Limited (Non-Voting
Javedan Corp Ltd. SUK 04-OCT-18 04-OCT-26 1.3% Ordinary Shares)
Equity 12,854 12,854 0 0.0% 0.0%

Masood Textile Mills Ltd. Suk 17-DEC-19 17-DEC-24 1.3% Total 873,779,714 873,779,714 0 0.0% 0.0%

JS Bank Limited 29-DEC-17 29-DEC-24 1.3%

Name of the Members of Investment Committee
Dr. Amjad Waheed, CFA
Sajjad Anwar, CFA
Sindh Workers' Welfare Fund (SWWF)
The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of
Asim Wahab Khan, CFA
Rs.45,779,692/-. If the same were not made the NAV per unit/last one year return of scheme would Muhammad Ali Bhabha, CFA, FRM
be higher by Rs.0.0744/.74%. For details investors are advised to read note 7 of the latest financial Hassan Raza, CFA
statements of the Scheme.

Dispute Resolution / Complaint Handling

Complaint Service : www.nbpfunds.com/contact-us/investor-relations
SECP’s Service Desk Management System: sdms.secp.gov.pk
Notes: 1) The calculation of performance does not include cost of front end load.
2) Taxes apply. Further, tax credit also available as per section 62 of the Income Tax Ordinance, 2001.
Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past
performance is not necessarily indicative of future results. Please read the Offering Document to understand investment policies and the risks involved. The scheme holds certain non-compliant investments. Before making any investment
decision, investors should review the latest monthly Fund Manager Report and Financial Statements. The reported returns may include provisioning and reversal of provisioning against some debt securities. Page 10