The Pakistan Credit Rating Agency Limited
16-May-25
Analyst
Usama Ali
usama.ali@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of NBP Islamic Fixed Term Munafa Plan-III (Under NBP Islamic Mustahkam Fund)
| Rating Type | Stability Rating | |
|
Current (16-May-25 ) |
Previous (26-Dec-24 ) |
|
| Action | Maintain | Maintain |
| Long Term | AAA(f) | AAA(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The rating reflects strength of NBP Islamic Fixed Term Munafa Plan - III ('NIFTMP-III' or the 'Plan - III') as strong credit and interest rate risk profile. The objective of NIFTMP - III is to ensure that the original amount of investment is protected while having the potential to yield positive return to investors as maturity of the plan. At the end of Mar'25, in terms of asset allocation, the Plan-III had invested ~99.7% as GoP Ijarah Sukuk, and the remaining ~0.3% as others. In perspective of credit quality, the Plan-III had allocated ~99.9% in Government Securities/ AAA-rated avenues and the remaining ~0.1% in AA rated avenues, at the end-Mar'25. The WAM (Weighted Average Maturity) of Plan - III stood at 53 days as of Mar'25. The Duration of the Plan - III stood at 41 days, at the end-Mar'25. The Plan's investment is effectively managed to accommodate both expense ratio and fixed returns promised to investors. The Plan's unit holding pattern is highly concentrated with the top 10 investors representing ~74.31% of the net assets, which exposes the fund to high level of redemption pressure.
Going forward, any material changes in the investment policy and/or compliance with the rating criteria for the assigned rating would have an impact on the ratings.
About
the Entity
NBP Fund Management Limited (the 'Company'), established in 2005, is licensed by the Securities and Exchange Commission of Pakistan (SECP) to carry out asset management and investment advisory services. The National Bank of Pakistan is the largest shareholder of the company, with a ~54% stake, followed by Baltoro Growth Fund (~36%) and individual investors (~10%). The CEO of NBP Fund Management Limited, Dr. Amjad Waheed, CFA, has over 25 years of experience in mutual funds and portfolio management. The Company’s eight-member Board of Directors includes three independent directors and the CEO. With total assets under management of ~PKR 575bln as of December 2024, the Company manages a diversified portfolio of twenty-six open-end mutual funds, four voluntary pension schemes, and one exchange-traded fund (ETF).