PACRA Maintains Stability Rating to NBP Government Securities Plan - IV

NBP Government Securities Fund is a low-risk profile open-ended Fund. The objective of the NBP Government Securities Fund is to provide attractive returns by investing primarily in Government Securities. Allocation plan(s) launched by the NBP Fund Management Limited under this Fund may be perpetual or may have fixed maturity. NBP Government Securities Plan I, II, III, IV, V and VI come under the umbrella of this Fund. NBP Government Securities Plan I, III and V were matured. The plan II, IV and VI are invest in authorized avenues to meet investment objectives.
NBP Government Securities Plan - IV was launched in May'23. The plan, in line with its investment objective, is invest in the authorized investment avenues i.e. Government Securities, cash in banks excluding term deposit certificates and near cash instrument like T-Bills. The size of this plan is PKR 4,431mln as of Jun-24. The Fund had invested ~76.7% in T-Bills, 4.6% of cash in AA- and above-rated banks, and ~13.9% in PIBs as of Jun'24. The WAM of the Plan stood at 445 days at the end of Jun’24, exposing the Fund to high credit rate risk. However, since the investment is in Government Securities, the credit risk is at a manageable level. The duration of the Plan stood at 365 days at the end of Jun’24, exposing the Fund to interest rate risk The unit holding pattern of top ten investor concentration of the plan was ~61.04%, exposing the Plan to high redemption pressure risk. However, sound liquidity is reducing the 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.

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.
The Company’s nine-member Board of Directors includes three independent directors and the CEO. With overall assets under management of PKR ~346bln at end-Jun'24, the Company is currently managing a diversified fund slate of twenty-six open-end mutual funds, four voluntary pension schemes and one Exchange Traded Fund.