PACRA Maintains Stability Rating of NBP Islamic Savings Fund

NBP Islamic Savings Fund (“NISF” or “the Fund”) is a moderate risk profile fund. The Fund’s objective is to earn a reasonable rate of return in a Shariah-compliant manner by investing primarily in Shariah-compliant money market instruments and bank deposits. As of Dec’25, the Fund’s AUM stood at ~PKR 10,467mln, up from PKR 7,912mln at the time of Jun’25, reflecting growth in fund size during the period while maintaining the Fund’s investment strategy. In terms of asset allocation, the Fund maintained ~54.50% in Cash holdings, followed by ~19.30% in Certificates of Musharika (COM), ~9.80% in placements through Bai-Muajjal, ~9.40% in Short-Term Sukuk, and ~3.80% in placements with Banks and DFIs, with the remaining portion allocated to other instruments including receivables. The allocation reflects a liquid portfolio with diversified exposure across Shariah-compliant short-term avenues to support stable returns. From a credit quality perspective, ~30.90% of the portfolio was invested in AA- rated avenues, ~26.40% in AAA rated instruments, ~14.60% in AA+ rated avenues, and ~7.10% in A1+ rated instruments, with the remaining portion allocated to other categories. This composition indicates moderate credit risk exposure with a diversified allocation across rating tiers. At end-Dec’25, the Fund’s duration stood at 24 days, indicating low sensitivity to interest rate movements and supporting liquidity management. Meanwhile, the WAM was recorded at 17 days, reflecting a short-tenor investment strategy. The unit holding pattern remained moderately concentrated, with approximately 29.14% of units held by the top 10 investors. In terms of performance, the Fund reported a 12-month trailing return of 10.00% as of Dec’25, which remained slightly below the benchmark return of 10.10%, indicating marginal underperformance relative to its benchmark.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have 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 600bln as of December 2025, the Company manages a diversified portfolio of twenty-six open-end mutual funds, four voluntary pension schemes, and one exchange-traded fund (ETF).