PACRA Assigns Stability Rating to NBP Savings Plus Fund

NBP Savings Plus Fund ("NSPF" or "the Fund") is moderate risk profile Plan. The objective of the Fund is to minimize risk and generate a reasonable return along with a high degree of liquidity from a portfolio primarily constituted of bank deposits and money market instruments. As of Sept ’26, NBP Savings Plus Fund (NSPF) had received IPO subscriptions of approximately PKR 19mln. The portfolio reflects the launch phase, with approximately 99.7% invested in Cash and 0.3% in other assets, including receivables. From a credit quality perspective, approximately 99.7% of assets were placed in AAA-rated avenues, while WAM stood at 1 day. The Fund’s A+ rating is based on its intended investment design, which targets credit quality of A+ and above, with a projected allocation of 10% in AAA, 30% in AA and 60% in A+ rated instruments, and a WAM of 90 to 120 days. This mix is expected to be built mainly through short-term Sukuks, Margin Trading System (MTS) exposure and placements with microfinance banks. The launch-phase holding in Cash and AAA-rated avenues is an interim position, while the rating reflects the intended portfolio profile. The assessment also considers the Fund’s investment policy, which permits exposure to government and government-backed securities, cash and near-cash instruments, reverse repos, term deposits and other authorized money market instruments, subject to prescribed exposure limits. Per management, counterparty diversification will remain in line with regulatory requirements. The Fund is envisaged to exceed PKR 3bn in size, targeting retail and corporate investors. The assessment draws support from NBP Funds, which carries an AM1 rating, reflecting its established track record, investment processes and risk controls. As the portfolio moves toward the stated mix, a longer WAM and greater A+ rated exposure will increase sensitivity to spread movements and reinvestment risk. The current 1-day WAM keeps these sensitivities minimal in the interim. The top 10 investors account for 100% of total holdings, consistent with the launch phase. Management expects this to moderate to around 15% to 20% post-launch. Until the investor base broadens, redemption patterns remain a liquidity consideration, while the Fund’s operating history and evidence of return stability will build as it matures. In terms of performance, the Fund delivered a return of 10.3%, compared with the benchmark return of 11.3% and the peer average of 8.1%. The rating remains sensitive to alignment of the actual portfolio with the stated design, adherence to the WAM range and moderation in investor concentration.
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 595.6bln as of Sept '26, the Company manages a diversified portfolio of twenty-six open-end mutual funds, four voluntary pension schemes, and one exchange-traded fund (ETF).