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The Pakistan Credit Rating Agency Limited
Press Release

Date
28-Mar-23

Analyst
Wajeeha Asghar
wajeeha.asghar@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 Daily Dividend Fund

Rating Type Stability Rating
Current
(28-Mar-23 )
Previous
(28-Sep-22 )
Action Maintain Upgrade
Long Term AA+(f) AA+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

NBP Islamic Daily Dividend Fund (or the Fund) is a low-risk profile fund. The assigned rating reflects the Fund's strong credit and interest rate risk profile emanating from its investment strategy. The Fund had invested ~47.6% in bank majority in AAA rated, ~20.8% in placement with NBFI rated AA+ and above, ~15.6% in Corporate Sukuks rated AA and above. Whereas ~14% in certificate of investment and ~2.0% in others at the end Dec’22. The duration of the Fund stood at 26 days at the end Dec’22, exposing low interest rate risk. The WAM of the Fund stood at 33 days at the end Dec’22, exposing low credit risk. The unit holding pattern of the Fund stood at ~62.34%, representing the top ten investor concentration.
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 and family also holds a 10% stake in the company.
The Company’s nine-member Board of Directors includes three independent directors and the CEO. With overall assets under management of PKR 213bln at end-Dec'22, the Company is currently managing a diversified fund slate of twenty five open-end mutual funds, two 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.