PACRA Maintains Stability Rating of NAFA Islamic Income Fund (Formerly; NAFA Islamic Aggressive Income Fund)
|Rating Type||Stability Rating|
The investment objective of the fund is to earn reasonable rate of return for its unit holders by constructing a portfolio primarily invested in Shariah compliant money market and debt securities.
Currently, fund's exposure with sukuk is 12%, while 79% of the fund's assets are exposed as banking deposits with banks rated 'A-' & above. Exposure with 'AAA' rated banks was 27% whereas with A+ and A- rated banks exposure was 8% and 43% respectively at end-Dec 17. The unit holding pattern of the fund is reasonably concentrated with top10 investors representing 36% of the fund's total assets.
The fund intends to maintain its allocation towards bank placements (50%). The remaining assets (30%) will be invested in Shariah compliant government securities and good quality debt instruments. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remain critical for the rating.
NBP Fund Management Limited (Formerly: NBP Fullerton Asset Management Limited), established in 2005, is licensed by Securities and Exchange Commission (SECP) to carry out asset management and investment advisory business. NBP is the largest shareholder of the AMC with a stake of ~54%, followed by Alexandra Fund Management Pte. Ltd ~36% stake. The CEO of NBP Fund, Dr. Amjad Waheed, also holds a stake of 10% in the company.
Company nine-member Board of Directors comprise the company’s CEO, three representatives of NBP, two representatives of FFMG and three independent directors. During the year Mr. Mudassir Husain Khan and Mr. Tariq Jamali joined the company’s board as a Non-Executive directors, both are the representatives of the bank. The company is currently managing a diversified fund slate of twenty funds in the categories of asset allocation, income, equity and money market.