Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Stability Rating of NBP Islamic Mahana Amdani Fund
Rating Type | Stability Rating | |
Current (10-Oct-24 ) |
Previous (09-Apr-24 ) |
|
Action | Maintain | Maintain |
Long Term | A+(f) | A+(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
NBP Islamic Mahana Amdani Fund is a moderate risk-profile Fund. The investment objective of the Fund is to earn a reasonable rate of return in a Shariah compliant manner by investing in Shariah compliant debt securities, money market instruments and bank deposits. The Fund's asset quality is adequate and in line with the rating criteria at end of Jun'24. As of the end of the Jun'24, Fund's investment was ~71.20% in AAA/ Government Securities rated avenue, ~11.20% in AA+ rated avenues, ~7.50% in A rated avenue, with the reminder invested in other categories. At the end of Jun'24, most of investment was held in sukuks (~59.8%) followed by bank placement (~16.3%), certificate in musharakah (~8.0%), Government backed securities (~8.7%), and remaining was invested in others. The duration of the Fund stood at 84 days at the end Jun’24, exposing low-interest rate risk. The WAM of the Fund stood at 368 days at the end Jun’24, exposing high credit risk. At the end of Jun'24, the top ten investor concentration stood at 9.43%, exposing the Fund to very low 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.