PACRA Maintains Stability Rating of NBP Savings Fund

NBP Savings Fund (or the Fund) is a moderate risk profile Fund. The investment objective of the Fund is to earn a competitive rate of return while preserving capital to the extent possible by investing in liquid assets. The Fund will comprise of investments of various investment horizons, with a significant amount invested in short term investments for the purpose of maintaining liquidity. The Fund's asset quality is adequate and is in line with the rating criteria at end Jun'24. As of the end of the Jun'24, Fund investment was ~82.50% in AA- rated avenue. ~2.20% in A+ rated category, ~2.80% in AAA/ Government Securities rated avenues, with the reminder invested in other categories. At the end of Jun'24, most of investments was held in bank in the form of cash & placements (~87%) followed by MTS (~9.7%) and remaining was invested in others. Both the duration and WAM of the Fund stood at 6 days at the end Jun’24, limiting the interest rate and credit risk of the Fund. At the end of Jun'24, the top ten investor concentration stood at ~61.23%, exposing the Fund to high redemption pressure. To mitigate this risk, 87% investment are held in bank in the form of cash & placements.
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.