PACRA Maintains Stability Rating of NBP Mahana Amdani Fund
|Rating Type||Stability Rating|
NBP Mahana Amdani Fund (or the "Fund") is a moderate risk-profile fund. The Fund aims to minimize risk, preserve capital and generate a reasonable return along with a high degree of liquidity.. As of end-Dec’21, the Fund has invested ~80% of its net assets in ‘A’ and higher-rated banks resulting in low WAM and duration. Both the WAM and duration stood at 19 days at end-Dec’21. Correspondingly, the Fund is shielded from interest rate risk. The investor base of the Fund is moderately diversified with the top 10 investor concentration standing at 16% at end-Dec'21.
Going forward, in accordance with the investment policy the fund intends to maintain its current asset allocation, depending upon the market outlook. Material Changes in the Fund's asset allocation and/or credit quality will impact the rating.
NBP Fund Management Limited (or the "Company"), established in 2005, is licensed by Securities and Exchange Commission (SECP) to carry out asset management and investment advisory business. National Bank of Pakistan is the largest shareholder of the company with a stake of ~54%. In 2019, Baltoro Growth Fund has acquired the entire 36% stake of Alexandra Fund Management Private Limited in the Company. Baltoro Capital is a Pakistan focused private equity firm. Baltoro Capital has made investments in the pharmaceutical, renewable energy and financial services sectors in Pakistan. It is actively deploying its funds in businesses positioned to achieve extraordinary growth. The CEO of NBP Fund Management Limited, Dr. Amjad Waheed, CFA and family also holds a 10% stake in the company.
The Company’s nine-member Board of Directors includes three independent directors and the CEO. With overall assets under management of PKR 169,025mln at end-Dec'21, the Company is currently managing a diversified fund slate of twenty seven open-end mutual funds, two voluntary pension schemes and an Exchange Traded Fund.