Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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.