PACRA Maintains Stability Rating of NBP Income Opportunity Fund

NBP Income Opportunity Fund (“NIOF” or “the Fund”) is a medium risk profile fund. The objective of the Fund is to seek maximum possible preservation of capital and a reasonable rate of return by investing primarily in money market and debt securities with good credit ratings and liquidity. As of Dec’25, the Fund’s AUM stood at ~PKR 11,632mln, up from PKR 8,843mln at the time of Jun’25, reflecting notable growth in fund size during the period while maintaining the Fund’s investment strategy. In terms of asset allocation, the Fund maintained ~38.20% in bank deposits, followed by ~19.90% in spread transactions, ~17.40% in T-Bills, ~10.60% in PIBs, and ~7.20% in TFCs/Sukuk, while ~3.70% was placed with banks and the remaining portion allocated to other instruments. The allocation reflects a diversified strategy combining liquidity, sovereign exposure, and yield-enhancing instruments. From a credit quality perspective, ~28.00% of the portfolio was invested in Government Securities, ~19.90% in spread transactions, ~15.20% in AAA rated avenues, ~14.30% in A+ rated instruments, and ~7.30% in A1 rated avenues, with the remaining portion allocated to other rated categories. This composition indicates moderate credit risk exposure with diversification across rating tiers. At end-Dec’25, the Fund’s duration stood at 79 days, indicating low to moderate sensitivity to interest rate movements. Meanwhile, the WAM was recorded at 123 days, reflecting a balanced maturity profile. The unit holding pattern remained moderately concentrated, with approximately 55.34% of units held by the top 10 investors. In terms of performance, the Fund reported a 12-month trailing return of 16.10% as of Dec’25, which remained significantly above the benchmark return of 11.10%, indicating strong 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).