PACRA Maintains the Stability Rating of NBP Islamic Savings Fund.
|Rating Type||Stability Rating|
Currently, fund's exposure with sukuk is 6%, while 72% of the fund's assets are invested as bank deposits with banks rated 'A‐' & above. Exposure with 'AAA'
rated banks was 33% at end‐Jun 19. The unit holding pattern of the fund is reasonably concentrated with top 10 investors representing 42% of the fund's
total assets. A sizeable investment of 20% has been made in commercial papers.
Going forward, the fund intends to increase its allocation towards bank placements. The remaining assets 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, 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%. During the year, Baltoro Growth Fund acquired the entire (36%) stake of Alexandra Fund Management Pte. Ltd. in the company. Baltoro Capital is a Pakistan focused private equity firm. Baltoro has made three investments in the pharmaceutical, renewable energy and financial services sectors. It is actively deploying its funds in businesses positioned to achieve extraordinary growth. 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 company is currently managing a diversified fund slate of thirty-four mutual funds and two pension funds.