PACRA Maintains Stability Rating of NBP Islamic Mahana Amdani Fund
NBP Islamic Mahana Amdani Fund ( or the "Fund") is a medium risk-profile fund. The objective of the Fund is to earn a reasonable rate of return in a Shariah-compliant manner by investing in Shariah-compliant debt securities, money market instruments and bank deposits. The assigned rating reflects the Fund's moderate credit and interest rate risk profile emanating from its moderate risk investment strategy. As of Jun'23, the allocation of Fund was ~53.9% of cash in A and above-rated banks in the form of deposits and placements, ~29.2% in AA+ and above rated Corporate Sukuk, ~8.6% in AA+ rated NBFI and ~7.6% in GoP Ijarah Sukuk. The duration of the Fund stood at 56 days at the end of Jun’23, limiting the exposure to interest rate risk. The WAM of the Fund stood at 525 days at the end of Jun’23; exposing the Fund to high credit risk. The credit risk is high due to investment in long-term Sukuk and Govt securities. However, the investment in Govt Securities mitigates the overall credit risk. The unit holding pattern of the Fund was ~15.19% at the end of Jun'23 representing top ten investor concentration; limiting the exposure to 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.
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.