PACRA maintains Stability Rating to NBP Islamic Government Securities Plan – III

NBP Islamic Government Securities Fund is a low-risk profile open-ended Fund. The objective of the Fund is to offer different allocation plans and to provide investors in each allocation plan with attractive returns, by investing primarily in Shariah-Compliant Government Securities. Allocation plan(s) launched by the NBP Fund Management Limited under this Fund may be perpetual or may have fixed maturity. NBP Islamic Government Securities Plan I, II, III, IV and V come under the umbrella of this Fund. The plans will invest in authorized avenues to meet investment objectives.
NBP Islamic Government Securities Plan – III was launched on 19 Jan'24. The plan, in line with its investment objectives, shall invest in the authorized investment avenues i.e. Islamic Government Securities, cash deposits in Islamic banks, or Islamic window of conventional banks excluding term deposit certificates.
The size of the Plan was PKR 14,711mln at the end of Dec-24. In term of asset class, the Plan had invested ~22% in Cash, ~75% in GoP Ijarah Sukuk, and the remaining as others, at the end December'24. In perspective of credit quality, the Plan had allocated ~75% in Government Securities, ~0.1% in AAA rated avenues, ~2.7% in AA, ~19.25 in AA- rated avenues. At the end December 2024, the WAM (Weighted Average Maturity) of the Plan stood at 467 days, and the duration of the Plan stood at 126 days. The unit holding pattern of the top 10 investor concentration of the Plan was ~13.68%, exposing the Plan to very low 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).