Analyst
Afnan Iqbal
afnan.iqbal_old@pacra.com_old
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains the Stability Rating of NBP Islamic Money Market Fund.
Rating Type | Stability Rating | |
Current (18-Oct-19 ) |
Previous (18-Apr-19 ) |
|
Action | Maintain | Maintain |
Long Term | AA(f) | AA(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
Currently, fund's exposure with banks is 98% which constitutes the major portion of the fund. Consequently the fund managed to maintain its duration within 01 day range during the last 4 quarters. The unit holding pattern of the fund is reasonably concentrated with top 10 investors representing 95% of the fund's total assets.
Going forward, the fund intends to increase its allocation towards bank placements. The remaining assets will be invested in Shariah compliant government
securities. 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, 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 company is currently managing a diversified fund slate of thirty-four mutual funds and two pension funds.