NBP Fund Management Limited ("NBP Funds" or "AMC") was incorporated in 2005 as a public unlisted AMC. Association with NBP provides strength with a network of 1,503 (Dec'24: 1,508) branches in Pakistan, including 207 Islamic Banking branches and 16 overseas branches.

The AMC is licensed by SECP to carry out asset management, investment advisory, and pension services. NBP Funds is one of the largest Asset Management companies in Pakistan with a diversified product slate in conventional and Shariah-compliant categories.

The market share of the AMC stood at 12.2% at the end Mar'26 (Dec'24: 11.7%). The AMC still retained its second-highest AUM share in market.

NBP Funds currently oversees a broad portfolio that includes twenty-seven funds across twelve conventional and Shariah-compliant categories, along with four voluntary pension schemes and one ETF. The AMC also manages an SMA portfolio.

At the AMC level, the top 10 investor concentration stood at ~25% as of end-Dec’25 (Dec’24: 26%), indicating a slightly improved diversification in the investor base. The average related party holding represents ~7% of total AUM. The investor base remains predominantly institutional, accounting for 62.7%, while retail investors contribute 37.3%, reflecting a relatively balanced yet institutionally driven clientele mix.

NBP is the largest shareholder of the AMC with a stake of 54% followed by Baltoro Growth Fund with a stake of 36% and individuals holds the remaining 10% stake in the AMC.

With decades of experience and consistent profitability, NBP has built a strong financial foundation and an extensive presence across the country. It is widely regarded as one of the most recognized names in the banking industry.

With an asset base of ~PKR 5.1bln at end Dec'25, the association with NBP provides strong support and lends credence to the NBP Funds.

The AMC’s nine-member Board comprises the Chief Executive Officer, three representatives of National Bank of Pakistan (NBP), two representatives of Baltoro Growth Fund, and three independent directors, reflecting a balanced governance structure with adequate representation of sponsor, strategic investor, and independent oversight.

The Board of Directors comprises seasoned professionals drawn from key sponsoring institutions as well as independent backgrounds, offering a well-balanced mix of expertise. Mr. Shaikh Muhammad Abdul Wahid Sethi (FCA, MBA Finance) serves as a Non-Executive Director representing the National Bank of Pakistan (NBP), bringing over 35 years of banking experience and currently holding the position of SEVP/Chief Financial Officer. Mr. Faisal Ahmed (MBA), also representing NBP as a Non-Executive Director, has 30 years of banking experience and serves as SEVP & Group Chief of the Retail Banking Group. Mrs. Mehnaz Salar (LLB Hons, Barrister-at-Law) contributes 38 years of legal and banking experience as a Non-Executive Director representing NBP and holds the role of SEVP & Head of Legal Division and Company Secretary (A). From Baltoro Growth Fund, Mr. Ali Saigol (BSc Entrepreneurship & Economics) and Mr. Imran Zaffar serve as Non-Executive Directors, bringing 24 and 30 years of experience respectively, with significant roles in fund management. Among the independent directors, the recently appointed Mr. Tahir Jawaid brings 46 years of diverse leadership experience, including his role as CEO of The Hunar Foundation. Mr. Saad Muzaffar Waraich contributes 30 years of experience as President of Transworld Associates. Mr. Umar Ahsan Khan, another independent director, brings 36 years of experience with leadership exposure at the CEO level in business operations. The recent retirement of Mr. Khalid Mansoor and Mr. Saad Amanullah Khan marks a transition in the Board’s composition. Overall, the Board reflects strong sectoral diversity, encompassing banking, fund management, legal, engineering, and corporate leadership expertise.

There are three committees at the Board level, Audit and Risk Committee, HR and Remuneration Committee and Strategy and Business Planning for effective monitoring and board assistance. The Board meeting attendance ratio is almost 100% for all board of directors.

NBP Funds maintains an in-house Internal Audit function responsible for evaluating the effectiveness of internal controls and ensuring adherence to established policies and procedures. The department reports its findings on a quarterly basis to the Board’s Audit Committee and monitors the implementation of corrective actions. The external auditors of the AMC, A. F. Ferguson & Co., have issued an unqualified (clean) opinion on the financial statements for FY25, stating that the financial statements present a true and fair view in accordance with applicable accounting and reporting standards in Pakistan.

NBP Funds operates through a well-defined organizational structure with clear reporting lines from the Chief Executive Officer (CEO), and oversight provided by the Board of Directors and its Audit & Risk Committee. Key functions, including Investment, Finance, Operations, Risk, Compliance, Internal Audit, Technology, Human Resources, and Business Development, are managed by experienced senior personnel, reflecting a specialized management framework. The governance framework is further supported by various management committees, primarily chaired by the CEO, while the Operational & Financial Risk Management Committee is headed by the CFO, ensuring focused oversight of financial and risk matters. The structure reflects appropriate segregation of duties, with independent control functions such as Risk, Compliance, and Internal Audit operating separately from business and investment functions, with direct reporting lines to the Board or relevant committees, thereby strengthening the overall control environment and governance framework.

The management team comprises experienced professionals with diversified expertise across investment management, finance, technology, and operations, carrying an average experience of around 20 years. The team is led by Dr. Amjad Waheed (CFA Charter Holder, MBA), Chief Executive Officer, who possesses around 35 years of professional experience in the financial services and investment management industry. Key members include Mr. Muhammad Murtaza Ali (FCA, FITM, FICS), Chief Financial Officer & Company Secretary, Mr. Asim Wahab Khan (CFA Charter Holder, MBA), Chief Investment Officer, Mr. Ozair Ali Khan (Masters in Management Information Systems), Chief Technology Officer, and Mr. Mustafa Tanna (MS, CA, Associate Member ICAP & ICAEW), Chief Operating Officer. The senior management is further supported by experienced professionals including Mr. Salman Ahmed (CFA Charter Holder, MBA), Head of Fixed Income, and Mr. Hassan Raza (CFA Charter Holder, ACCA, BSc), Head of Equity, strengthening the Company’s investment management capabilities.

NBP Funds’ technology infrastructure is assessed as strong, supported by an in-house core asset management system with dedicated modules for equity and fixed income portfolios, ensuring efficient operations and clear functional segregation. The platform is complemented by a diversified digital ecosystem, including web and mobile portals, WhatsApp self-service, and corporate solutions such as N-Pay, enabling seamless client interaction. Integration with external platforms, including CDC’s Centralized Gateway Portal and ongoing linkages with NBP and Emlaak, reflects a progressive shift toward automation and straight-through processing. The availability of multiple payment channels (1Bill, KuickPay, IBFT, RAAST) and NADRA-based biometric verification further enhances accessibility and control. While certain modules, particularly in corporate onboarding and advanced digital payments, remain under development, the overall framework is comprehensive. The technology function demonstrates strong scalability and adaptability, with ongoing enhancements expected to further improve operational efficiency and client experience.

NBP Funds maintains a strong and independent control environment supported by a dedicated Internal Audit Department (IAD). The function is headed by Mr. Syed Waheed Ul Hassan Abidi, FCA, MBA, who brings over 25 years of professional experience across the audit and financial sectors. The IAD operates with functional independence from management, with administrative reporting to the CEO and direct reporting to the Audit & Risk Committee of the Board, ensuring robust oversight and objective assurance over internal controls, compliance, and risk management framework. This structure reflects a firm governance culture, where internal audit plays a key role in strengthening control discipline and enhancing operational effectiveness across the organization.

The AMC maintains a comprehensive internal risk assessment framework, underpinned by an advanced Management Information System (MIS) that generates a diverse suite of analytical reports. These reports enable continuous surveillance of portfolio exposures against predefined thresholds, ensuring strict adherence to the AMC’s risk appetite. Credit risk management is guided by well-articulated investment policies, prudent exposure limits, and disciplined counterparty selection criteria, in line with regulatory requirements. The Risk Management function conducts rigorous credit evaluations of issuers and instruments, complemented by periodic stress testing and scenario analysis to gauge resilience under adverse conditions. Furthermore, concentration risk is actively mitigated through strategic diversification across sectors, instruments, and counterparties. Overall, the AMC exhibits a robust and disciplined approach to credit risk management, reflecting sound governance practices and vigilant oversight mechanisms

NBP Funds maintains a strong liquidity management framework supported by an IT system for timely monitoring of liquidity positions. The AMC maintains adequate liquidity buffers to meet redemption requirements within defined internal limits. The funds are primarily invested in highly liquid instruments, including bank deposits, Government securities (T-Bills and PIBs), and money market placements. Most schemes follow a short settlement cycle of 2–3 business days, ensuring timely investor payouts. Liquidity is further supported by low weighted average maturities (WAMs) across money market and income funds, along with a high-quality investment portfolio dominated by AAA and AA+ rated instruments, which enhances market liquidity and ease of realisation. Overall, the AMC demonstrates a strong liquidity profile and effective redemption management capacity.

NBP Funds manages market risk through close coordination between the Risk Management and Fund Management teams, with regular review of market conditions and portfolio exposures. Risk is controlled through monitoring of investments in marketable securities, compliance with internal policies, and adherence to SECP regulations. A formal Investment Committee oversees investment decisions to ensure alignment with fund objectives and risk limits. The framework reflects a disciplined approach to market risk management and portfolio oversight.

The investment decision making process is well-structured with the CEO providing critical support. The AMC convenes separate Investment Committees, each for fixed income and equity funds. Each committee comprises CEO, CIO and Head of Research along with the head of fixed income and head of equity accompanied by respective fund managers and head of risk as a permanent member.

The Investment Committee meets on a weekly basis to review portfolio positioning and market developments. The Research Department supports the process by presenting a structured investment summary, including key market insights and portfolio recommendations, to facilitate informed decision-making and ensure disciplined investment oversight.

The Research Department operates under the purview of the Chief Investment Officer (CIO), headed by Mr. Hassan Raza, CFA, who carries over 14 years of overall professional experience, including around 8 years in equity research. The team comprises experienced and qualified research analysts, providing strong analytical support for investment decision-making. Fund performance is regularly monitored by the Research Department to ensure alignment with defined benchmarks and investment objectives. Investment oversight is further reinforced through the Investment Committee, which meets on a weekly basis to review market developments, portfolio positioning, and research-based recommendations. This framework supports disciplined investment decision-making and strengthens governance across the investment process. In addition, to retain and grow its share in the SMA segment, management has established a dedicated team to provide personalized services to high-net-worth individuals, reflecting a focused approach toward client servicing alongside institutional investment management.

The Investor Services Department is responsible for managing investor communications, queries, and overall client facilitation. The Fund has developed a strong digital and service infrastructure, including an online investor portal, mobile application, 1-Link integration, M-Net ATM services, and a dedicated call center for prompt resolution of complaints and service requests. In addition, an Online Portfolio Information System is available for SMA clients, providing real-time access to portfolio information and enhancing transparency and client convenience.

The AMC maintains a structured investor reporting framework by ensuring the timely dissemination of fund manager reports through its official website, thereby strengthening transparency and information accessibility. In addition, the Chief Executive Officer and Chief Investment Officer periodically provide concise video briefings covering key market developments and sector-wise outlook. These initiatives contribute to enhanced investor communication and support informed decision-making, reflecting a well-established disclosure and reporting framework from a credit rating perspective.

The AMC caters to both retail and corporate investor segments, with the retail distribution function directly overseen by the Chief Executive Officer. Since Jun’25, the AMC has further strengthened its distribution footprint through the execution of multiple distribution agreements, supporting broader market penetration and product outreach. The sales function is managed by a dedicated team of approximately 309 employees, reflecting adequate human resource strength to support business growth. Furthermore, a centralized Client Relationship Management (CRM) system is in place to monitor the performance and activities of sales managers and investment consultants, ensuring effective supervision, improved coordination, and enhanced client servicing standards.

The AUM base of NBP Funds recorded relatively subdued growth of around 0.4% since Dec’24, reaching PKR 525 billion as of end-Dec’25 (Dec’24: PKR 523 billion), which includes PKR 165 billion in Shariah-compliant funds. This reflects a slower growth trajectory compared to the broader industry trend. Overall fund performance remained broadly aligned with prevailing market conditions, with approximately half of the funds outperforming their respective benchmarks, indicating active portfolio management, while the remaining funds largely tracked benchmark performance. Notably, the NBP Financial Sector Fund delivered a strong return of 90.5% during CY25, primarily driven by its special mandate to invest within the financial sector equity universe, which enabled focused sectoral positioning and effective capture of market opportunities.

The profitability of NBP Funds demonstrated a notable improvement, with profit after tax (PAT) increasing to ~PKR 929mln during Dec’25 (Dec’24: PKR 705mln), primarily driven by growth in management fee income amid higher average AUMs and improved operational efficiency. The AMC’s total assets stood at PKR 5,115mln as of 6MFY26 (FY25: PKR 5,800mln), reflecting some contraction, likely attributable to market-driven revaluation effects and strategic adjustments in asset allocation. Despite this, the equity base remained strong at PKR 2,780mln as of Dec’25 (SPLY: PKR 3,051mln), comfortably exceeding the minimum regulatory requirement and providing adequate cushion to absorb potential shocks. Overall, the AMC maintains a sound financial profile, supported by sustained profitability and a solid capital position.