PACRA Maintains Stability Rating of NBP Government Securities Plan - IV

NBP Government Securities Plan IV ('NGSP-IV' or the 'Plan') was launched under NBP Government Securities. NBP Government Securities Plan IV is a medium-risk profile open-end Fund. The objective of the NBP Government Securities Fund is to provide attractive returns by investing primarily in Government Securities. Allocation plan(s) launched by the NBP Fund Management Limited under this Fund may be perpetual or may have fixed maturity. As of Jun’26, the Plan’s Assets Under Management (AUM) stood at ~PKR 4.35bln, down from PKR 7.23bln as of Dec’25, reflecting a contraction in fund size during the period while maintaining the Plan’s investment strategy. In terms of asset allocation, approximately 75.1% of the portfolio was invested in PIBs, ~19.3% in Cash, ~2.7% in T-Bills, and the remaining ~2.9% in other instruments. The allocation reflects a predominantly sovereign-focused strategy, with a meaningful cash allocation providing liquidity support. From a credit quality perspective, ~77.8% of the assets were invested in Government Securities, ~18.3% in AA- rated avenues, ~1.1% in AAA rated instruments, and the remaining ~2.9% in other rated avenues, indicating manageable credit risk due to the Fund’s predominant exposure to Government Securities. At end-Jun’26, the Plan’s WAM stood at 637 days, exposing the Fund to relatively high credit and maturity risk; however, the associated credit risk remains manageable given the significant allocation to Government Securities. The duration of the Plan stood at 487 days, indicating relatively high sensitivity to interest rate movements. The unit holding pattern remained highly concentrated, with the top 10 investors accounting for ~80.9% of total holdings, indicating higher redemption pressure. However, the Plan’s substantial exposure to liquid Government Securities provides some mitigation against potential redemption requirements. In terms of performance, the Plan delivered a return of 18.5% as of Jun’26, compared to the benchmark return of 11.8% and peer average return of 15.46%, indicating significant outperformance relative to both its benchmark and comparable funds.
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 552.3bln as of Jun '26, the Company manages a diversified portfolio of twenty-six open-end mutual funds, four voluntary pension schemes, and one exchange-traded fund (ETF).