PACRA Maintains Asset Manager Rating of NBP Fund Management Limited

The rating reflects the NBP Fund Management Limited's ("NBP Funds" or the "AMC") distinguished standing as a leading institution in the asset management sector. The rating takes comfort from AMC’s stable and seasoned management team, systematic investment process, and firmrisk management framework. Furthermore, the expansion in AUMs, the strategic launch of new investment plans, enhanced client servicing capabilities, and notable strides in digital transformation collectively bode well for the assigned rating. During CY25, the industry’s AUMs recorded modest growth of around 4%, reaching PKR 4.5 trillion (Dec’24: PKR 4.3 trillion). The money market category held the largest share at 56%, followed by the income category at 24% and the equity category at 20%. Growth in the equity category was primarily driven by stock market gains during CY25, along with a slight increase in fresh inflows. Meanwhile, the money market category posted moderate growth of ~8%, whereas the income category experienced a decline of 23%. In contrast, the AUMs of NBP Funds witnessed relatively muted growth of approximately 0.4% since Dec’24, standing at PKR 525bln as of end-Dec’25 (Dec’24: PKR 523bln), including PKR 165bln in Shariah-compliant funds, indicating a slower expansion compared to the broader industry. This growth has enabled the AMC to retain the second-highest market share of 12.2% in the sector (Dec'24: 11.7%). Overall fund performance remained broadly in line with market conditions, with around half of the funds outperforming their benchmarks, reflecting active management, while others tracked benchmarks. The NBP Financial Sector Fund stood out with a strong 90.5% YoY return (Dec’25). The AMC is playing aggressively in the equity market while simultaneously expanding its product suite through the launch of multiple plans under the fixed rate/return category, across both Islamic and conventional segments. The clientele mix remains tilted towards institutional investors, which constitute 62.7% of the base, while retail investors account for 37.3%. The AMC is currently managing a diverse product slate in twelve different conventional and Islamic categories, voluntary pension schemes, and one exchange-traded fund. The AMC has developed a diversified digital ecosystem to enhance investor servicing, including platforms such as N-Pay, NBP Fund Digital, WhatsApp self-service, debit cards, and 1IBFT functionality. Additionally, integration with CDC’s Centralized Gateway Portal has been completed. These initiatives are expected to strengthen retail penetration while improving operational efficiency and overall client experience. The profitability of NBP Funds demonstrated a notable improvement, with profit after tax (PAT) increasing to ~PKR 929mln during Dec’25 (Dec’24: PKR 705mln), primarily driven by growth in management fee income amid higher average AUMs and improved operational efficiency. This strong uptick underscores the AMC’s expanding AUM base, improved product mix, and enhanced contribution from advisory mandates, translating into a meaningful uplift in core revenue generation. whereas, as of Dec'25, the equity stood at ~PKR 2,780mln (Jun'25: PKR 3,051mln), reflecting a moderation on a year-on-year basis.
The rating is dependent on the management’s ability to sustain its market share. Upholding strong organization structure and controls along with retention of key personnel is imperative. Consistent superior fund performance remains imperative for the rating.

About the Entity
NBP Funds, established in 2005, is licensed SECP to carry out asset management and investment advisory business. National Bank of Pakistan is the largest shareholder of the AMC with a stake of ~54%. Baltoro Growth Fund acquired the entire 36% stake of Alexandra Fund Management Private Limited in the AMC. Baltoro Capital is a Pakistan-focused private equity firm investing in high-growth sectors like pharmaceuticals, renewable energy, and financial services. The AMC’s nine-member Board comprises the CEO, three representatives of NBP, two representatives of Baltoro Growth Fund, and three independent directors.