PACRA Maintains Stability Rating of NBP Money Market Fund
|Rating Type||Stability Rating|
NBP Money Market Fund (or the "Fund") is a very low-risk profile fund. The assigned rating reflects very strong capacity to maintain relative stability in returns and respond to stress situations. The Fund has invested ~97% of its net assets in banks mainly rated AAA. Both the duration and WAM stood at 1 day at the end Jun’22 (Dec’21: 1 day). Limiting the exposure to interest rate and credit risk. The investor base of the Fund is not much diversified as the top 10 investor concentration stood at 38%. Therefore, it can be ascertained that the Fund is subject to moderate level of redemption pressure.
Going forward, the fund intends to maintain its current asset allocation. Material changes in the fund's asset allocation will impact the credit 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.