PACRA Maintains Stability Rating of NBP Islamic Daily Dividend Fund
|Rating Type||Stability Rating|
The rating reflects the strength of the fund's credit and interest rate risk profile, considerable holding of cash and bank balances reinforce the liquidity profile. At end Dec-19, 91% of fund's assets were placed with banks rated 'AAA', remaining funds were allocated to Sukuk and commercial paper. The unit holding pattern of the fund is highly concentrated with top ten investors representing ~91% of the fund's assets.
Going forward, the fund intends to increase its asset allocation in commercial paper, while 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, 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 Private Limited 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, CFA and family also holds a 10% stake in the company.
The Company’s nine-member Board of Directors includes three independent directors and the CEO. During FY19 and 1QFY20 there have been four new inductions on the Board of Directors. With overall assets under management of ~PKR 111,842 mln at end Dec-19, the Company is currently managing twenty seven open-end funds and two voluntary pension schemes under thirteen different categories.