Rai Umar Zafar
PACRA Upgrades Asset Manager Rating of NBP Fullerton Asset Management Limited
|Rating Type||Asset Manager|
The “AM1” (AM one) rating is the highest rating level of Asset Manager Rating scale. The rating reflects the company's positioning as one of the leading players in the domestic AMC industry supported by its proficient and well qualified management team, sound operating platform and diversified product slate. Low turnover in the key management positions has helped in building a cohesive culture. The management's increased emphasis towards asset allocation and FoF funds has resulted in continuous enhancement of retail penetration (at end-Dec 16: 32%) which lends support to the company's business profile. This comes as a result of concerted efforts to augment the marketing team and utilizing the distribution network of parent bank along with the continuous improvement in the investor facilitation services. The robust growth in the Shariah compliant segment resulted in its enhanced share in the AUM mix. A well-structured investment process and supportive decision making infrastructure has provided consistency to the good fund performance track record. The rating incorporates NAFA's association with a well-known fund management group and the country's leading commercial bank. Above factors contributed towards NAFA crossing PKR. 100bln assets under management recently.
The rating is dependent on company's ability to sustain its fund performance. Strengthening its market positioning in line with its peers along with consistent enhancement in retail penetration remain important. Stability in key human resource, organic growth in AUMs and continuous advancement on the technological front will bode well for the company.
NAFA was incorporated in August 2005. National Bank of Pakistan (NBP) is the major shareholder of NAFA with 54% stake, followed by Alexandra Fund Management Pte. Ltd - 36% stake. With an asset base of PKR ~2trl at end-Dec16, NBP is the one of the country's largest commercial bank. The CEO of NAFA holds a stake of 10% in the company. Presently, the company is managing a diversified portfolio of 21 open-end funds (11 Shariah compliant & 10 conventional), two pension schemes and several discretionary portfolios with AUM of PKR 100bln at end Mar-17.
NAFA’s nine-member BoD comprises the company’s CEO, three representatives of NBP, two representatives of Alexandra Fund and three independent directors. During the year Mr. Nausherwan Adil – Senior Executive Vice President & Group Chief Operations of NBP, is the chairman of the board. The founding CEO, Dr. Amjad Waheed, CFA, holds a Doctorate in Business Administration; he has extensive experience in domestic and international capital markets. He is supported by an experienced and qualified team of professionals.