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 Income Opportunity Fund
| Rating Type | Stability Rating | |
|
Current (17-Oct-25 ) |
Previous (17-Apr-25 ) |
|
| Action | Maintain | Maintain |
| Long Term | A+(f) | A+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
NBP Income Opportunity Fund ('NIOF' or 'the Fund') is a medium-risk profile fund. The investment objective of the Fund is to seek maximum possible preservation of capital and a reasonable rate of return via investing primarily in money market & debt securities having good credit rating and liquidity. The assigned rating reflects the Fund's moderate credit and interest rate risk profile emanating from its investment strategy. Regarding asset allocation, the Fund had invested ~49.4% in T-Bills, ~15.8% in Bank Deposits, ~14% in PIBs, ~11.3% in TFC/Sukuks, and ~9.5% in others including receivables at the end Jun 2025. In terms of credit quality, the Fund was in line with the rating criteria and had invested ~67% in Govt. Securities/ AAA rated avenues, ~9% in A+, ~8.4% in A1, ~1.6% in AA-, with the remainder invested in other categories including receivables. The duration of the Fund stood at 182 days at the end June 2025. The WAM of the Fund stood at 248 days, which indicates credit risk at the higher end of moderate spectrum. At the end of Jun-25, the top ten investor concentration stood at ~52.92%, exposing the Fund to high 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).