The Pakistan Credit Rating Agency Limited
27-Sep-24
Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA
PACRA Maintains Stability Rating of NBP Government Securities Savings Fund
| Rating Type | Stability Rating | |
|
Current (27-Sep-24 ) |
Previous (28-Mar-24 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA-(f) | AA-(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
NBP Government Securities Savings Fund (or the "Fund") is a low-risk profile fund. The investment objective of the Fund is to provide competitive return by investing primarily in Government Securities, thus limiting its credit risk. The assigned rating reflects the Fund's low credit and interest rate risk profile emanating from its investment strategy. The credit quality of the Fund was ~82.40% in AAA/ Gov Sec rated avenue. ~12.4% in AA, and ~5.20% in others. At the end of Jun'24, the Fund had allocated ~54.3% in T-bills, ~26.3% in PIB’s, ~12.5% in bank deposit, 1.7% invested in ijara sukuk whereas, remaining was invested in others. At the end of Jun'24, the top ten investor concentration stood at ~48.56%, 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.