PACRA Maintains Stability Rating of NAFA Money Market Fund
|Rating Type||Stability Rating|
The fund's mandate is to generate stable income stream for its unit holders while ensuring capital preservation.
The rating reflects the fund's low risk profile emanating from the fund's investment policy to invest in avenues rated 'AA' and above. At end Dec 17, asset allocation of the fund consisted of Bank Deposits (99%). The portfolio duration of the fund represents very low exposure towards interest rate volatility. The fund's unit holding pattern remains highly concentrated with the top10 investors comprising 55% of the fund's net assets, which shows moderate redemption pressure over the fund.
Going forward, the rating remains dependent on maintaining exposure with high credit quality financial institutions with portfolio duration not exceeding 90 days. Meanwhile, the remaining assets of the fund must be placed with scheduled banks having credit ratings of 'AA' and above. PACRA would monitor compliance against agreed parameters on monthly average basis.
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.