PACRA Maintains Stability Rating of NBP Government Securities Liquid Fund

NBP Government Securities Liquid Fund (“NGSLF” or “the Fund”) is a very low risk profile fund. The Fund’s objective is to generate optimal returns with minimum risk, while providing easy liquidity and reasonable income to its unit holders by investing primarily in short-term Government Securities. As of Dec’25, the Fund’s AUM stood at ~PKR 6,084mln, down from ~PKR 12,169mln 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 ~73.80% in T-Bills, followed by ~17.50% in Cash holdings and ~8.10% in placements with Banks and DFIs, with the remaining portion allocated to other instruments including receivables. The allocation reflects a highly conservative strategy with dominant exposure to sovereign instruments to ensure capital preservation and liquidity. From a credit quality perspective, ~73.80% of the portfolio was invested in Government Securities, ~25.50% in AAA rated avenues, and ~0.20% in AA- rated instruments, with the remaining portion allocated to other categories. This composition indicates a very strong credit quality profile with minimal exposure to credit risk. At end-Dec’25, the Fund’s duration stood at 46 days, indicating low sensitivity to interest rate movements. Meanwhile, the WAM was recorded at 46 days, reflecting a short-tenor investment strategy. The unit holding pattern remained moderately concentrated, with ~55.28% of units held by the top 10 investors. In terms of performance, the Fund reported a 12-month trailing return of 10.50% as of Dec’25, which remained below the benchmark return of 11.10%, 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 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).