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 with an investment objective to provide income enhancement and capital preservation through investments in prime quality financial sector TFCs/Sukuks, bank deposits, and short-term money market instruments. As of Jun’26, the Fund’s Assets Under Management (AUM) stood at ~PKR 48.08bln, down from PKR 69.24bln as of Dec’25, reflecting a contraction in fund size during the period while maintaining the Fund’s investment strategy. In terms of asset allocation, approximately 72.6% of the portfolio was invested in Cash, ~16.0% in PIBs, ~2.2% in TFCs/Sukuk, ~1.8% in T-Bills, and ~1.0% in PIBs, with the remaining portion allocated to other assets including receivables. The allocation reflects a highly liquid portfolio with a significant portion maintained in cash, complemented by sovereign and corporate fixed-income instruments. From a credit quality perspective, ~43.5% of the assets were invested in A+ rated avenues, ~29.4% in AAA-rated avenues, ~18.3% in Government Securities, ~1.6% in AA+ rated avenues, and ~1.1% in AA-rated instruments, with the remainder in other rated categories. The Fund’s credit quality remained adequate and broadly aligned with the applicable rating criteria. At end-Jun’26, the Fund’s WAM stood at 182 days, while duration stood at 56 days, reflecting moderate credit risk exposure but limited sensitivity to interest rate movements. The unit holding pattern showed moderate concentration, with the top 10 investors accounting for ~39.6% of net assets, indicating moderate potential redemption pressure. In terms of performance, the Fund delivered a return of 11.2% as of Jun’26, compared to the benchmark return of 11.4% and peer average return of 10.8%, indicating marginal underperformance relative to its benchmark, though outperforming 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).