PACRA Maintains Stability Rating of NBP Financial Sector Income Fund

NBP Financial Sector Income Fund (“NFSIF” or “the Fund”) is a medium risk profile fund. The Fund’s objective is to provide income enhancement and preservation of capital by investing in prime quality financial sector TFCs/Sukuk, bank deposits, and short-term money market instruments. As of Dec’25, the Fund’s AUM stood at ~PKR 69,238mln, down from PKR 75,068mln at the time of Jun’25, reflecting moderate net outflows during the period while maintaining the Fund’s investment strategy. In terms of asset allocation, the Fund maintained ~55.50% in Cash holdings, followed by ~14.40% in placements with Banks and DFIs, ~11.20% in PIBs, ~8.80% in T-Bills, and ~2.00% in TFCs/Sukuk, while marginal exposures were held in MTS (~0.30%), GoP Ijarah (~0.40%), and Commercial Papers (~0.10%), with the remaining portion allocated to other instruments including receivables. The allocation reflects a liquidity-driven strategy complemented by selective exposure to sovereign and financial sector instruments to enhance returns. From a credit quality perspective, ~30.10% of the portfolio was invested in A+ rated avenues, ~20.40% in Government Securities, ~15.60% in A rated instruments, ~14.90% in AAA rated avenues, and ~6.3% in AA, and ~0.30% in AA+ rated instruments, with the remaining portion allocated to other categories. This composition indicates moderate credit risk exposure with diversification across rating tiers. At end-Dec’25, the Fund’s duration stood at 61 days, indicating low to moderate sensitivity to interest rate movements. Meanwhile, the WAM was recorded at 146 days, reflecting a balanced maturity profile. The unit holding pattern remained moderately concentrated, with approximately 49.78% of units held by the top 10 investors. In terms of performance, the Fund reported a 12-month trailing return of 11.10% as of Dec’25, which was in line with the benchmark return of 11.10%, indicating performance broadly aligned with 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).