PACRA Maintains Stability Rating of NBP Financial Sector Income Fund
|Rating Type||Stability Rating|
NBP Financial Sector Income Fund (or the "Fund") is medium risk profile fund. The assigned rating reflects moderate strength of the fund's credit and interest rate risk profile. The Fund has invested ~85% of its net assets into banks rated AA+ and above, ~9.5% in TFC/Sukuks whereas ~3% in CPs. The duration of the Fund was 10 days in the end Jun’22 (Dec’21: 9 days), limiting the exposure to interest rate risk. The WAM of the Fund is slightly decreased to 145 days in the end Jun’22 (Dec’21: 167 days), exposing the Fund to credit risk. The unit holding pattern of the Fund was ~58.6% representing the top ten investor concentration.
Going forward, material changes in the fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect 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 177,186mln at end-Jun'22, the Company is currently managing a diversified fund slate of twenty five open-end mutual funds, two voluntary pension schemes and one Exchange Traded Fund.