PACRA Maintains Stability Rating of NBP Money Market Fund
|Rating Type||Stability Rating|
NBP Money Market Fund (or the "Fund") is a low-risk profile fund. The Fund has a highly liquid nature and adheres to its Investment Policy by having an impressive average duration of 1 day (At end Jun'21). This minimizes the exposure to interest rate risk and in this particular case, the interest rate risk is virtually non-existent. Moreover, 99.5% of the Fund's total assets are placed in Bank Deposits with banks mostly rated 'AA+' and above. The unit holding pattern is adequate as the top 10 investors contribute towards 34.23% of the total Fund's assets. Therefore, the Fund faces a low to moderate level of redemption pressure. The extremely liquid nature of the Fund is continuously expected to provide an active cushion against this risk.
Going forward, in accordance with the investment policy the fund intends to maintain its current asset allocation. Material changes in the fund's asset allocation will impact the credit 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.