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The Pakistan Credit Rating Agency Limited
Press Release

Date
10-Oct-24

Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com

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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 Islamic Money Market Fund

Rating Type Stability Rating
Current
(10-Oct-24 )
Previous
(09-Apr-24 )
Action Maintain Maintain
Long Term AA(f) AA(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

NBP Islamic Money Market Fund (or the Fund) is a low-risk profile fund. The investment objective of the Fund is to provide competitive return with maximum possible capital preservation by investing in low risk and liquid Shariah Compliant authorized instruments. The Fund's asset quality is good and in line with the rating criteria at end of Jun'24. As of the end of Jun'24, Fund's investment was ~40.10% in AAA/Government Securities rated avenue, ~22.80% in AA+ rated avenue, ~14.50% in AA rated avenue, with the reminder invested in other categories. At the end of Jun'24, most investment was held in banks in the form of cash & placements (~69.7%), followed by short term sukuk (~15.2%), GoP ijara sukuk (~7.8%) and remaining was invested in others. The duration of the Fund stood at 27 days at the end Jun’24, exposing low-interest rate risk. The WAM of the Fund stood at 31 days at the end of Jun’24, exposing low credit risk. At the end of Jun'24, the top ten investor concentration stood at 37.28%, 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.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.