PACRA Assigns Initial Stability Rating to NBP Fixed Term Munafa Plan - XIVB under NBP Mustahkam Fund-II

NBP Fixed Term Munafa Plan - XIVB under NBP Mustahkam Fund-II ("NFTMPXIVB" or "the Fund") is categorized under a moderate-risk profile. To provide promised fixed return to the Unit Holders who hold their investment within Plan till Maturity by investing in Authorized Investable Avenues primarily in Fixed Income Instruments. The Plan was successfully launched, mobilizing IPO subscriptions of approximately PKR 9,885mln, reflecting investor confidence and favorable market acceptance. The investment strategy is designed to maintain allocations across high-credit-quality instruments, primarily AA+ to AAA-rated bank deposits and Government securities, in line with the approved investment mandate. As of the reporting date, the portfolio comprised 99.8% exposure to AAA-rated bank cash deposits, with the remaining 0.2% classified under Others, demonstrating adherence to the stated investment strategy and a focus on capital preservation. Management has committed to maintaining the Plan's Weighted Average Maturity (WAM) and duration within a three-to-six-month range, reflecting a short-duration strategy intended to limit interest rate sensitivity while maintaining adequate liquidity and reinvestment flexibility. From an investor composition perspective, the initial unit-holder base is predominantly institutional, comprising mainly corporate investors with no related-party exposure. The subscription window remains open until August 17, 2026, and management expects additional inflows over the remaining subscription period, which are likely to further diversify the investor base. As the Plan progresses through its investment cycle, its performance record will continue to develop.
Going forward, the assigned rating will remain contingent upon management's ability to maintain the Plan's portfolio within the stipulated credit quality thresholds and the approved investment mandate, while effectively managing duration, liquidity, reinvestment, and investor concentration risks. Continued adherence to the stated investment strategy, preservation of the intended credit profile, and the timely realization of the targeted returns at maturity will remain critical considerations in the ongoing assessment of the assigned rating.

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 552.3bln as of June 2026, the Company manages a diversified portfolio of twenty-six open-end mutual funds, four voluntary pension schemes, and one exchange-traded fund (ETF).