The Pakistan Credit Rating Agency Limited
28-Dec-18
Analyst
Muhammad Usman
muhammad.usman@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Asset Manager Rating of NBP Fund Management Limited
| Rating Type | Asset Manager | |
|
Current (28-Dec-18 ) |
Previous (30-Jun-18 ) |
|
| Action | Maintain | Maintain |
| AM Rating | AM1 | AM1 |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The rating reflects the company's leading position in Pakistan's asset management industry. Strong brand name, seasoned management team, structured investment process, along with well-developed risk management function and diversified fund slate bodes well for the company in maintaining its competitive positioning. The company has experienced an improvement in its AUMs by ~10% to ~PKR 102bln at end Nov-18 as compared to ~PKR 93bln in Dec-17. The rating incorporates from the company's association with the National Bank of Pakistan and is expected to supplement its retail penetration which, in turn, will diversify the AUMs base and strengthen its standing among peers. The recent change in the ownership, Baltoro Growth Fund, taking up (36%) stake in NBP Fund Management Limited from Alexandra Fund Management Pte. Ltd. is expected to further enhance governance and transparency through higher engagement of Baltoro Growth Fund.
The rating is dependent on the management’s ability to hold its leading position in the industry. Upholding strong organization structure along with retention of key personnel and consistent superior fund performance remains imperative 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. National Bank of Pakistan is the largest shareholder of the company with a stake of ~54%. During the year, Baltoro Growth Fund acquired the entire (36%) stake of Alexandra Fund Management Pte. Ltd. in the company. Baltoro Capital is a Pakistan focused private equity firm. Baltoro has made three investments in the pharmaceutical, renewable energy and financial services sectors. It is actively deploying its funds in businesses positioned to achieve extraordinary growth. The CEO of NBP Fund Management Limited, Dr. Amjad Waheed, also holds a 10% stake in the company.
The company’s nine-member Board of Directors include three independent directors and the CEO. During the year, there has been some new induction in the Board of Directors, the AMC is waiting for the SECP approval. The company is currently managing a diversified fund slate of twenty-five funds.