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 credit quality of the Fund was ~47.8% in A rated avenue, ~22.8% in AA rated category, ~4.8% in AAA/Govt Sec, and ~24.6% in others. At the end of Jun'24, the Fund had allocated ~62.6% in Banks in the form of cash & placements, ~21.8% in Short Term Sukuks, ~12.9% in certificate of Musharika whereas, remaining was invested in others. The duration and WAM of the Fund stood at 28 days at the end of Jun’24, limiting the interest rate risk and credit risk of the Fund. At the end of Jun'24, the top ten investor concentration stood at ~34.05%, exposing the Fund to moderate 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.