PACRA Maintains Stability Rating of NBP Riba Free Saving Fund

NBP Riba Free Saving Fund ('RFSF' or the 'Fund') is a moderate-risk profile Fund. The investment objective of the Fund is to provide preservation of capital and earn a reasonable rate of return along with a high degree of liquidity by investing in short-term Shariah compliant banks and money market/ debt securities. As of Jun’26, the Fund’s Assets Under Management (AUM) stood at ~PKR 26.97bln, up from PKR 20.07bln as of Dec’25, reflecting healthy growth in fund size during the period while maintaining the Fund’s investment strategy. In terms of asset allocation, approximately 74.4% of the portfolio was invested in Bank Deposits, ~9.6% in Bai-Muajjal Placements, ~7.6% in placements with NBFCs, and ~7.1% in Sukuk, with the remaining portion invested in other instruments. The allocation reflects a highly liquid Shariah-compliant portfolio, predominantly concentrated in bank deposits and short-term placements. From a credit quality perspective, ~65.7% of the assets were invested in AAA-rated avenues, ~13.6% in AA- rated instruments, ~7.6% in AA+ rated avenues, and ~5.6% in A1+ rated instruments, with the balance in other categories. The Fund’s asset quality remained adequate and in line with the applicable rating criteria at end-Jun’26. The Fund’s WAM stood at 10 days, while duration stood at 14 days, effectively limiting both credit and interest rate risk and supporting the Fund’s liquidity profile. The unit holding pattern remained relatively well diversified, with the top 10 investors accounting for ~33.3% of total holdings, indicating relatively low potential redemption pressure. In terms of performance, the Fund delivered a return of 10.2% as of Jun’26, compared to the benchmark return of 9.6% and peer average return of 11.4%, indicating outperformance relative to its benchmark, though remaining below the peer average.
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 552.3bln as of Jun '26, the Company manages a diversified portfolio of twenty-six open-end mutual funds, four voluntary pension schemes, and one exchange-traded fund (ETF).