PACRA Maintains Stability Rating of NBP Islamic Savings Fund
|Rating Type||Stability Rating|
NBP Islamic Savings Fund (or the ‘Fund’) is a moderate risk-profile fund. The assigned rating reflects the Fund's strong credit and interest rate risk profile emanating from its investment strategy. The Fund had allocated ~69% of its net assets in banks rated A+ and above, ~17% in certificates of musharaka whereas ~9.2% in Corporate Sukuks. The duration and the WAM of the Fund stood at 12 days (Dec'21: 21 days), limiting the exposure to interest rate and credit risk. The unit holding pattern of the Fund were ~31% representing a moderate level of redemption pressure.
Going forward, material changes in the Fund's asset allocation strategy, impacting its credit quality and/or average duration, 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.