PACRA Maintains Stability Rating of NBP Government Securities Plan - IV

NBP Government Securities Plan IV (“NGSP-IV” or “the Fund”) is a medium risk open-end fund, launched under NBP Securities Fund. The objective of the Fund is to provide investors with attractive returns by investing primarily in Government Securities. As of Dec’25, the Fund’s AUM stood at ~PKR 7,229mln, down from PKR 9,439mln at the time of Jun’25, reflecting net outflows during the period while maintaining the Fund’s investment strategy. In terms of asset allocation, the Fund maintained ~48.9% in PIBs and ~47.4% in T-Bills, followed by ~2.1% in Cash holdings, while the remaining ~1.6% was allocated to other instruments including receivables. The allocation reflects a strong sovereign exposure strategy with a balanced mix of medium- to long-term government instruments. From a credit quality perspective, ~96.30% of the portfolio was invested in Government Securities, ~1.70% in AAA rated avenues, and marginal exposures of ~0.20% each in AA+ and AA- rated instruments, with the remaining ~1.60% allocated to other categories. This composition indicates a very high credit quality profile with negligible exposure to credit risk. At end-Dec’25, the Fund’s duration stood at 428 days, indicating relatively high sensitivity to interest rate movements. Meanwhile, the WAM was recorded at 567 days, reflecting exposure to longer-tenor instruments. The unit holding pattern remained moderately concentrated, with approximately 62.46% of units held by the top 10 investors. In terms of performance, the Fund reported a 12-month trailing return of 11.70% as of Dec’25, which remained above the benchmark return of 11.10%, indicating outperformance relative to its benchmark.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have 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 524.5bln as of December 2025, the Company manages a diversified portfolio of twenty-six open-end mutual funds, four voluntary pension schemes, and one exchange-traded fund (ETF).