PACRA Maintains Stability Rating of NBP Islamic Money Market Fund

NBP Islamic Money Market Fund ('NIMMF' or the 'Fund') is a low-risk profile fund. The investment objective of the Fund is to provide competitive return with maximum possible capital preservation by investing in low risk and liquid Shariah Compliant authorized instruments. The assigned rating reflects the Fund's strong credit and interest rate risk profile emanating from its investment strategy. As of Jun’26, the Fund’s Assets Under Management (AUM) stood at ~PKR 58.67bln, up from PKR 43.51bln 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 55.5% of the portfolio was invested in Cash, ~15.9% in placements with Banks and DFIs, ~12.4% in Money Market Placements (Bai-Muajjal), ~11.8% in Short Term Sukuk, ~2.9% in GoP Ijarah, with the remaining ~1.5% in other assets including receivables. The allocation reflects a highly liquid Shariah-compliant portfolio, with a significant portion maintained in cash and short-term instruments. From a credit quality perspective, ~41.6% of the assets were invested in AA+ rated avenues, ~38.1% in AAA rated avenues, ~6.7% in A1, ~5.1% in A1+, and ~3.9% in AA rated instruments, with the balance in other categories. The Fund remained compliant with the applicable rating criteria, with a significant concentration in high-quality rated instruments. At end-Jun’26, the Fund’s WAM stood at 18 days and duration stood at 25 days, indicating low exposure to credit and interest rate risk and supporting the Fund’s liquidity profile. The unit holding pattern remained relatively concentrated, with the top 10 investors accounting for ~55.4% of total holdings, indicating moderate potential redemption pressure; however, the Fund’s high allocation to liquid assets provides adequate flexibility to meet potential redemption requirements. In terms of performance, the Fund delivered a return of 11.0% as of Jun’26, compared to the benchmark return of 10.5% and peer average return of 10.5%, indicating outperformance relative to both its benchmark and comparable funds.
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).