PACRA Maintains Stability Rating of NBP Mahana Amdani Fund
|Rating Type||Stability Rating|
NBP Mahana Amdani Fund (or the "Fund") is a medium risk profile fund. The Fund is mandated by it's Investment Policy to invest in instruments and banks, which carry a minimum rating of 'A'. At end Jun'21, total bank deposits constituted 79.5% of the Fund's total assets and were placed within Banks mostly rated 'AA+' and above. Furthermore, 18.8% of the total assets were invested in MTS through margin financing. The major constituent (53.5%) of the Fund's assets was invested in 'AA+'. The unit holding pattern of the fund is properly diversified with top 10 investors contributing 13.96% of the total Fund's assets, keeping the redemption pressure on the lower side. The Fund does well to keep its average duration to 12 days (At end Jun'21). This limits the Fund's exposure to interest rate risk.
Going forward, Material Changes in the Fund's asset allocation and/or credit quality will impact the rating.
NBP Fund Management Limited (or the "Company"), 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%. In 2019, Baltoro Growth Fund has acquired the entire 36% stake of Alexandra Fund Management Private Limited in the Company. Baltoro Capital is a Pakistan focused private equity firm. Baltoro Capital has made investments in the pharmaceutical, renewable energy and financial services sectors in Pakistan. 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. With overall assets under management of PKR 168,016mln at end-Jun'21, the Company is currently managing a diversified fund slate of twenty eight open-end mutual funds, two voluntary pension schemes and an Exchange Traded Fund.