PACRA Maintains Stability Rating of NAFA Financial Sector Income Fund

The investment mandate of the fund is to earn a reasonable rate of return with minimal risk while ensuring capital protection by investing in a portfolio primarily comprising bank deposits and money market instruments.

The rating reflects the fund's good credit quality, modest liquidity profile and its mandate of maintaining minimum exposure of 70% at all times in the financial sector. At end-Dec 17, the portfolio of the fund was primarily invested with as banking deposits (87%). This exposure is mainly with banks rated 'A+' and above. The remaining assets of the fund were invested with debt securities (TFCs: 13% - A+ and above). Exposure to interest rate risk is moderate as duration of the fund did not exceed 37 days. The unit holding pattern of the fund is moderately concentrated with top10 investors representing 52% of the fund's assets.

Going forward, the fund plans to keep its allocation to debt instruments (45%), while the remaining assets will be invested in bank (40%) with rating 'A' & above and government securities (15%). Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remain critical for the rating
Going forward, the fund plans to keep its allocation to debt instruments (45%), while the remaining assets will be invested in bank (40%) with rating 'A' & above and government securities (15%). Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remain critical for the rating

About the Entity
NBP Fund Management Limited (Formerly: NBP Fullerton Asset Management Limited), established in 2005, is licensed by Securities and Exchange Commission (SECP) to carry out asset management and investment advisory business. NBP is the largest shareholder of the AMC with a stake of ~54%, followed by Alexandra Fund Management Pte. Ltd ~36% stake. The CEO of NBP Fund, Dr. Amjad Waheed, also holds a stake of 10% in the company.

Company nine-member Board of Directors comprise the company’s CEO, three representatives of NBP, two representatives of FFMG and three independent directors. During the year Mr. Mudassir Husain Khan and Mr. Tariq Jamali joined the company’s board as a Non-Executive directors, both are the representatives of the bank. The company is currently managing a diversified fund slate of twenty funds in the categories of asset allocation, income, equity and money market.