Analyst
Afnan Iqbal
afnan.iqbal_old@pacra.com_old
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains the Stability Rating of NBP Mahana Amdani Fund.
Rating Type | Stability Rating | |
Current (18-Oct-19 ) |
Previous (18-Apr-19 ) |
|
Action | Maintain | Maintain |
Long Term | AA-(f) | AA-(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
The rating reflects fund's good credit quality, sound liquidity profile. The fund's low risk emanates from its investment policy of maintaining a sizeable
proportion of placements with commercial banks pre dominantly rated in 'AA‐' and 'A+' category. At end‐Jun 19, fund's exposure with Bank was 92%,
CP was 6.2%. The majority of the exposure was with 'AA‐' rated banks (i.e. 57%). The fund's unit holding pattern remains adequately diversified with
top 10 investors representing 50% of the fund's assets at end‐Jun 19.
Going forward, the fund intends to maintain its investments in bank deposits. 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.
About
the Entity
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.