PACRA Maintains Stability Rating of NBP Riba Free Saving Fund

NBP Riba Free Saving Fund (or the "Fund") is a moderate-risk profile fund. The objective of the Fund is to provide preservation of capital and earn a reasonable rate of return along with a high degree of liquidity by investing in short-term Shariah-compliant banks and money market/debt securities. 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 ~64% in mainly A+ and above-rated banks in the form of deposits and placements, ~14% in GoP Ijarah Sukuk, ~12% in AAA-rated Corporate Sukuk and ~10% in AA+ rated Modaraba. The duration of the Fund stood at 50 days as of Jun’23, exposing the Fund to moderate interest rate risk. The WAM of the Fund stood at 425 days as of Jun’23, exposing the Fund to high credit risk due to the Fund’s investment in GOP Ijara Sukuk. However, investment in Govt securities mitigates the overall credit risk. The unit holding pattern of the Fund stood at ~18.97% 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.

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.