PACRA Maintains Stability Rating of NBP Islamic Money Market Fund

NBP Islamic Money Market Fund (“NIMMF” or “the Fund”) is a low risk profile fund. The objective of the Fund is to provide competitive returns with maximum possible capital preservation by investing in low-risk and liquid Shariah-compliant authorized instruments. As of Dec’25, the Fund’s AUM stood at ~PKR 43,512mln, up from PKR 37,250mln at the time of Jun’25, reflecting growth in fund size during the period while maintaining the Fund’s investment strategy. In terms of asset allocation, the Fund maintained ~47.20% in Cash holdings, followed by ~22.70% in money market placements (Bai Muajjal), ~11.10% in placements with Banks and DFIs, and ~10.30% in Short-Term Sukuk, with the remaining portion allocated to other instruments including receivables. The allocation reflects a highly liquid strategy with diversified exposure across short-term Shariah-compliant avenues to support stability and consistent returns. From a credit quality perspective, ~47.20% of the portfolio was invested in AAA rated avenues, ~31.80% in AA+ rated instruments, and ~4.40% in Government Securities, with the remaining portion allocated to other categories. This composition indicates a strong credit quality profile with a dominant allocation to high-grade instruments. At end-Dec’25, the Fund’s duration stood at 34 days, limiting sensitivity to interest rate movements and supporting liquidity management. Meanwhile, the WAM was recorded at 28 days, reflecting a short-tenor investment strategy. The unit holding pattern remained moderately concentrated, with approximately 31.07% of units held by the top 10 investors. In terms of performance, the Fund reported a 12-month trailing return of 10.40% as of Dec’25, which remained above the benchmark return of 9.90%, 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 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).