The Pakistan Credit Rating Agency Limited
10-Oct-24
Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of NBP Mahana Amdani 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 Mahana Amdani Fund (or the Fund) is a low risk profile Fund. The investment objective of the Fund, an open-end income scheme, is seeking to minimize risk, preserve capital and generate a reasonable return along with a high degree of liquidity from a portfolio primarily constituted of bank deposits and money market instruments. The Fund's asset quality is good and is in line with the rating criteria at end Jun'24. As of the end of Jun'24, Fund's investment was ~80.3% in AA- rated avenue, ~8.4% in AAA/Government Securities 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 (~81.6%) followed by T-bills (~7.6%), MTS (~5.6%) and remaining was invested in others. Both the duration and WAM of the Fund stood at 6 days at the end of 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 16.79% exposing the Fund to low redemption pressure.
Going forward, Any Material changes in the investment policy or the revised 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.