PACRA Maintains Stability Rating of NBP Government Securities Liquid Fund
|Rating Type||Stability Rating|
The rating reflects strong credit quality and liquidity profile of the fund. This emanates from maintaining a high exposure to government securities ~41% at end Dec-19. Fund's average exposure towards interest rate risk was low. The unit holding pattern of the fund represents moderate liquidity risk as top 10 investors represent 74% of the fund's assets at end Dec-19. Comfort can be drawn from the liquid nature of the investments.
Going forward, the fund intends to maintain its asset allocation towards goverment securities and bank deposits. Material changes in the fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect 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 Private Limited 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, CFA and family also holds a 10% stake in the company.
The Company’s nine-member Board of Directors includes three independent directors and the CEO. During FY19 and 1QFY20 there have been four new inductions on the Board of Directors. With overall assets under management of ~PKR 111,842 mln at end Dec-19, the Company is currently managing twenty seven open-end funds and two voluntary pension schemes under thirteen different categories.