PACRA Maintains Stability Rating to NBP Government Securities Plan - IV

NBP Government Securities Fund is a low-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. NBP Government Securities Plan I, II, III, IV, V and VI come under the umbrella of this Fund. NBP Government Securities Plan I, III and V were matured. The plan II, IV and VI are invest in authorized avenues to meet investment objectives.
NBP Government Securities Plan - IV was launched in May'23. The plan, in line with its investment objective, is invest in the authorized investment avenues i.e. Government Securities, cash in banks excluding term deposit certificates and near cash instrument like T-Bills.
At the end Dec-2024, the Fund size is PKR 11,256mln. In perspective of asset class, the Plan had invested in ~87.3% in T-Bills, ~7.5% in PIBs, and ~4.2% in Bank Deposit/ Cash, and ~1% in Others, at the end December'2024. In terms of credit quality, the Plan had invested ~94.8% in AAA rated avenues, ~4.2% in AA-, and the remaining in other rated avenues. At the end Dec-2024, the Plan's Weighted Average Maturity (WAM) stood at 295 days, exposing the Fund to high credit rate risk. However, since the investment is in Government Securities, the credit risk is at a manageable level. The duration of the Plan stood at 259, exposing the Fund to interest rate risk. The unit holding pattern of top ten investor concentration of the plan was ~46.02%, 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 575bln as of December 2024, the Company manages a diversified portfolio of twenty-six open-end mutual funds, four voluntary pension schemes, and one exchange-traded fund (ETF).