PACRA Maintains Stability Rating of NBP Islamic Mahana Amdani Fund
|Rating Type||Stability Rating|
NBP Islamic Mahana Amdani Fund (or the ‘Fund’) is a medium risk-profile fund. The assigned rating reflects the Fund's moderate credit and interest rate risk profile emanating from its investment strategy. The Fund had invested in ~52.6% in banks, majority in AA- rated bank, 18% in Corporate sukuks rated AA and above, ~11.9% in certificate of musharaka whereas ~5.4% in GoP/Ijarah, ~10.3% in Govt backed securities and ~1.8% in others. The duration of the Fund stood at 48 days at the end Dec’22, exposing moderate interest rate risk. The WAM of the Fund stood at 473 days at the end Dec’22, exposing high credit risk. The credit risk is high due to investment in long term sukuks and Govt securities. However, the investment in Govt Securities mitigate the overall credit risk. The unit holding pattern of the Fund was ~22.68% at the end Dec'22 representing 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.
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.