The Pakistan Credit Rating Agency Limited
17-Oct-25
Analyst
Usama Ali
usama.ali@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Apr-25
- Methodology | Rating Modifiers | Apr-25
- Assessment Framework | Stability Rating | Jul-25
Related Research
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PACRA Maintains Stability Rating of NBP Government Securities Plan - IV
| Rating Type | Stability Rating | |
|
Current (17-Oct-25 ) |
Previous (17-Apr-25 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA(f) | AA(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
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-ended 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. In perspective of asset class, the Plan had invested in ~51% in T-Bills, ~26.2% in Bank Deposit/ Cash, ~22.2% in PIBs, and ~0.8% in Others, at the end Jun'25. In terms of credit quality, the Plan had invested ~73.2% in AAA rated avenues, ~26% in AA-, and the remaining ~0.8% in other rated avenues. At the end Jun'25, the Plan's Weighted Average Maturity (WAM) stood at 397 days, exposing the Fund to high credit rate risk. However, since the investment is in Government Securities, the credit risk is manageable. The duration of the Plan stood at 303 Days, exposing the Fund to interest rate risk. The unit holding pattern of top ten investor concentration of the plan was ~57.77%, exposing the Plan to high redemption pressure risk. However, sound liquidity is reducing the redemption pressure.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an 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 483bln as of June 2025, the Company manages a diversified portfolio of twenty-six open-end mutual funds, four voluntary pension schemes, and one exchange-traded fund (ETF).