logo
The Pakistan Credit Rating Agency Limited
Press Release

Date
18-Oct-19

Analyst
Afnan Iqbal
afnan.iqbal_old@pacra.com_old
+92-42-35869504
www.pacra.com

Applicable Criteria

Related Research

Disclaimer
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains the Stability Rating of NBP Mahana Amdani 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 - -

The rating reflects fund's good credit quality, sound liquidity profile. The fund's low risk emanates from its investment policy of maintaining a sizeable
proportion of placements with commercial banks pre dominantly rated in 'AA‐' and 'A+' category. At end‐Jun 19, fund's exposure with Bank was 92%,
CP was 6.2%. The majority of the exposure was with 'AA‐' rated banks (i.e. 57%). The fund's unit holding pattern remains adequately diversified with
top 10 investors representing 50% of the fund's assets at end‐Jun 19.
Going forward, the fund intends to maintain its investments in bank deposits. 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.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.