PACRA Maintains Stability Rating of NBP Money Market Fund

NBP Money Market Fund ('NMMF' or the 'Fund') is a low-risk profile Fund. The objective of the Fund is to provide stable stream of income by investing in AA and above rated banks and money market instruments. In terms of asset allocation at end-Dec'24, the Fund's investments were primarily held in T-bills (~87.3%), followed by Cash (~6.2%), Money Market Placements (~6.4%), with the remainder in other instruments. In perspective of credit quality as of end-Dec'24, the Fund had ~99.8% allocation to AAA/Government Securities-rated avenues, ~0.1% to AA+-rated avenues, with the balance in other categories. Both duration and WAM stood at 74 days at end-December 2024, effectively limiting the Fund's exposure to interest rate and credit risk. The top ten investor concentration of ~52.92% at end-Dec'24 exposes the Fund to high redemption pressure, mitigated by the 99.8% allocation to AAA-rated avenues.
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).