Analyst
Muhammad Junaid
muhammad.junaid@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
PACRA Withdraws Stability Rating of NBP Active Allocation Riba Free Savings Fund
Rating Type | Stability Rating | |
Current (19-Apr-22 ) |
Previous (20-Oct-21 ) |
|
Action | Withdraw | Maintain |
Long Term | - | A-(f) |
Short Term | - | - |
Outlook | Stable | |
Rating Watch | - | - |
The management of NBP Fund Management Limited (or the "Company") has winded up the NBP Active Allocation Riba Free Savings Fund (or the "Fund"), on 20th December, 2020, due to significant redemptions leading to depletion in fund size. The fund size fell below the minimum regulatory requirement.
Consequently, PACRA withdraws the Stability Rating of BP Active Allocation Riba Free Savings Fund, with immediate effect. The previous stability rating of the Fund was 'A-(f)', announced on 20th October, 2021.
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 169,025mln at end-Dec'21, the Company is currently managing a diversified fund slate of twenty seven open-end mutual funds, two voluntary pension schemes and an Exchange Traded Fund.