The Pakistan Credit Rating Agency Limited
13-Oct-23
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of NBP Mahana Amdani Fund
| Rating Type | Stability Rating | |
|
Current (13-Oct-23 ) |
Previous (14-Apr-23 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA-(f) | AA-(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
NBP Mahana Amdani Fund (or the "Fund") is a moderate risk profile fund. The investment objective of the Fund is to minimize the risk, preserve capital and generate a reasonable return along with high degree of liquidity from a portfolio primarily constituted of bank deposits and money market instruments. The assigned rating reflects the Fund's moderate credit and interest rate risk profile emanating from its investment strategy. As of Jun'23, the Fund had allocated ~98.73% of cash in mainly AA- and above-rated banks. The duration and WAM stood at 1 day at the end Jun’23, limiting the exposure to interest rate risk and credit risk. The unit holding pattern of the Fund stood at ~19.47% at the end Jun’23, representing the top ten investor concentration; exposing the Fund to low level of redemption pressure.
Going forward, Any Material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the ratings. Risk may vary slightly from time to time considering the volatility of economic conditions.
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 ~238bln at end-Jun'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.