PACRA Maintains Stability Rating of NBP Government Securities Plan - I
|Rating Type||Stability Rating|
The rating incorporates the fund's very strong credit quality and moderate liquidity profile emanating from the fund's strategy to invest most of its funds in government securities (PIBs). The asset allocation of the fund includes ~90% Government Securities, ~6% Bank Deposits in 'AA-", whilst remaining in others including receivables.
Going forward, the fund will be maintaining its exposure in government bonds. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remains critical for the rating.
NBP Fund 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 Baltoro Growth Fund ~36% stake which they acquired from Alexandra Fund Management Pte. Ltd. The CEO of NBP Fund Management Limited, Dr. Amjad Waheed, also holds a 10% stake in the company.
The company’s nine-member Board of Directors include three independent directors and the CEO. During the year, there has been some new induction in the Board of Directors, the AMC is waiting for the SECP approval. The company is currently managing a diversified fund slate of twenty-seven funds.