PACRA Maintains Stability Rating of NBP Money Market Fund
|Rating Type||Stability Rating|
The rating reflects the fund's low risk profile emanating from the fund's investment policy to invest in avenues rated 'AA' and above. At end Jun'20, asset allocation of the fund consisted of bank deposits ~79% and primarily rated 'AAA'. Remaining assets of the fund were allocated to T-Bills. The portfolio duration of the fund represents very low exposure towards interest rate volatility. The fund's unit holding pattern is moderately concentrated with the top 10 investors comprising ~47% of the fund's assets, which shows moderate redemption pressure over the fund.
Going forward, the fund intends to reduce its exposure in T-Bills while the remaining funds will be invested with banks. Material changes in the fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, 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 comprises the CEO, three representatives of National Bank of Pakistan, two representatives of Baltoro Growth Fund and three independent directors. With overall assets under management of PKR 126,853mln at end Jun'20, the Company is currently managing a diversified fund slate of twenty seven open-end funds and two voluntary pension schemes under twelve different categories.