The Pakistan Credit Rating Agency Limited
17-Apr-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 Mahana Amdani Fund
| Rating Type | Stability Rating | |
|
Current (17-Apr-25 ) |
Previous (10-Oct-24 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA-(f) | AA-(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
NBP Mahana Amdani Fund ('NMAF' or the 'Fund') is a low-risk profile Fund. The investment objective of the Fund, an open-end income scheme, is seeking to minimize risk, preserve capital and generate a reasonable return along with a high degree of liquidity from a portfolio primarily constituted of bank deposits and money market instruments. In terms of asset allocation, at the end of Dec'24, most investment was held as T-bills (~47.9%) followed by MTS (~25.6%), Cash (~18.1%), Money Market Placements (~7.2%), and the remaining was invested in others. In perspective of credit quality, the Fund's asset quality is good and is in line with the rating criteria at end-Dec'24. As of the end of Dec'24, the Fund's investment was ~50.6% in AAA/Government Securities-rated avenues, ~9.8% in AA- rated avenues, with the remainder invested in other categories. Both the duration and WAM of the Fund stood at 52 days at the end of Dec'24, limiting the interest rate and credit risk of the Fund. At the end of Dec'24, the top ten investor concentration stood at 26.78%, exposing the Fund to low redemption pressure.
Going forward, any material changes in the investment policy or the devised 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).