PACRA Maintains Stability Rating of NBP Islamic Government Securities Plan – III

NBP Islamic Government Securities Plan III (“NIGSP III” or “the Fund”) is a medium risk profile fund. The objective of the Fund is to provide investors with attractive returns by investing primarily in Shariah-compliant Government Securities. As of Dec’25, the Fund’s AUM stood at ~PKR 1,714mln, down from PKR 2,807mln at the time of Jun’25, reflecting notable net outflows during the period while maintaining the Fund’s investment strategy. In terms of asset allocation, the Fund maintained a dominant exposure of ~88.60% in GoP Ijarah Sukuk, followed by ~10.40% in Cash holdings, with the remaining portion allocated to other instruments including receivables. The allocation reflects a strong sovereign exposure strategy aimed at capital preservation and stable returns. From a credit quality perspective, ~88.60% of the portfolio was invested in AAA rated avenues, ~9.90% in AA rated instruments, and ~0.40% in AA- rated avenues, with the remaining portion allocated to other categories. This composition indicates a high credit quality profile with minimal exposure to lower-rated instruments. At end-Dec’25, the Fund’s duration stood at 184 days, indicating moderate sensitivity to interest rate movements. Meanwhile, the WAM was recorded at 523 days, reflecting exposure to longer-tenor instruments. The unit holding pattern remained moderately concentrated, with approximately 38.4% of units held by the top 10 investors. In terms of performance, the Fund reported a 12-month trailing return of 8.30% as of Dec’25, which remained below the benchmark return of 10.60%, indicating underperformance 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 600bln 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).