PACRA Assigns Stability Rating to NBP Money Market Liquid Fund

NBP Money Market Liquid Fund ("NBP-MMLF" or "the Fund") is categorized under a low-risk profile. Objective of the Fund is to provide a stable income stream by investing in bank deposits and money market instruments as specified in the offering document. The Fund was launched on July 2, 2026, and is positioned to differentiate itself from the existing product suite through the introduction of a backward pricing mechanism, enabling same-day redemptions. The Fund targets an institutional investor base, with an envisaged fund size of approximately ~PKR 15bln-20bln, while as at July '26 the Fund size stands at ~PKR 3bln. The investment strategy is designed to maintain a credit quality profile of AA+ and above, with targeted allocations of at least 75% in AAA-rated instruments and above, around 15% in AA+ rated instruments, and the remaining 10% in AA rated securities and bank deposits, in line with the approved investment mandate, as of July '26 the credit quality was reported ~96.2% in AAA rated avenues, ~3.4% in Govt. Securities, and the remaining ~0.4% in Others. Management has committed to maintaining the Fund's Weighted Average Maturity (WAM) within the regulatory ceiling of 90 days, reflecting a short-duration strategy aimed at preserving liquidity while limiting interest rate sensitivity. Given the Fund's focus on highly rated banks and Government securities, exposure to individual counterparties is expected to remain moderate to high. From an investor composition perspective, the Fund is primarily targeted toward corporate and other institutional investors; accordingly, concentration among the top ten investors is expected to remain elevated during the initial phase. As the Fund progresses through its operational cycle, its performance track record will continue to develop.
Going forward, the assigned rating will remain contingent upon management's ability to maintain the Fund's portfolio within the stipulated credit quality thresholds and the approved investment mandate, while effectively managing liquidity, duration, counterparty, and investor concentration risks. Continued adherence to the targeted asset allocation, preservation of the intended credit profile, and sustained compliance with the Fund's investment strategy will remain key considerations in the ongoing assessment of the assigned rating.

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 552.3bln as of June 2026, the Company manages a diversified portfolio of thirty-one open-end mutual funds, six voluntary pension schemes, and one exchange-traded fund (ETF).