PACRA Maintains Stability Rating of NBP Islamic Savings Fund

NBP Islamic Savings Fund (or the "Fund") is a low risk-profile fund. The objective of the Fund is to earn a reasonable rate of return in a Shariah-compliant manner by investing primarily in Shariah-compliant money market instruments and bank deposits. The Fund will cater to various investment horizons; however, majority of the investment shall be in short-term investments for the purpose of maintaining sufficient liquidity. They include Treasury bills, CDs, and commercial paper, providing stable returns with minimal fluctuations. The assigned rating reflects the Fund's low credit and interest rate risk profile emanating from its investment strategy. The allocation of Fund as of Dec'23 was ~52% in Bank placements rated AA- and ~14.2% in AA rated placements with Banks and DFIs (Islamic), ~14% in First Habib Modaraba rated AA+ and ~9% in other bank placements. The duration and WAM of the Fund stood at 11 days at the end of Dec’23, limiting the exposure to interest rate and credit risk. The unit holding pattern of the Fund stood at ~20.39% representing top ten investor concentration; limiting the exposure to redemption pressure.
Going forward, any material changes in the investment policy and/or compliance with the rating criteria for the assigned rating would have an impact on the ratings.

About the Entity
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 of Directors includes three independent directors and the CEO. With overall assets under management of PKR ~268bln at end-Dec'23, the Company is currently managing a diversified fund slate of twenty five open-end mutual funds, two voluntary pension schemes and one Exchange Traded Fund.