PACRA Maintains Stability Rating of NBP Riba Free Saving Fund

NBP Riba Free Savings Fund (“NRFSF” or “the Fund”) is a moderate risk profile fund. The objective of the Fund is to provide preservation of capital and earn a reasonable rate of return along with a high degree of liquidity by investing in Shariah-compliant banks and money market/debt securities. As of Dec’25, the Fund’s AUM stood at ~PKR 20,073mln, down from PKR 31,620mln at the time of Jun’25, reflecting significant net outflows during the period while maintaining the Fund’s investment strategy. In terms of asset allocation, the Fund maintained ~49.00% in bank deposits, followed by ~17.80% in placements with NBFCs (COM), ~14.80% in placements with Banks and DFIs, and ~9.30% in Bai-Muajjal placements, with the remaining portion allocated to other instruments including receivables. The allocation reflects a liquid portfolio with diversified exposure across Shariah-compliant placement avenues to support stability and returns. From a credit quality perspective, ~34.90% of the portfolio was invested in AAA rated avenues, ~34.30% in AA- rated instruments, and ~8.80% in AA+ rated avenues, with the remaining portion allocated to other categories. This composition indicates moderate credit risk exposure with a balanced distribution across high to mid-tier rated instruments. At end-Dec’25, the Fund’s duration stood at 19 days, indicating low sensitivity to interest rate movements and supporting liquidity management. Meanwhile, the WAM was recorded at 16 days, reflecting a short-tenor investment strategy. The unit holding pattern remained moderately concentrated, with approximately 24.74% of units held by the top 10 investors. In terms of performance, the Fund reported a 12-month trailing return of 10.30% as of Dec’25, which remained above the benchmark return of 10.10%, 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 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).