PACRA Maintains Stability Rating of NBP Islamic Daily Dividend Fund
|Rating Type||Stability Rating|
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.
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.