PACRA Upgrades the Stability Rating of NBP Money Market Fund

NBP Money Market Fund ('NMMF' or the 'Fund') is a low-risk profile Fund. The objective of the Fund is to provide stable stream of income by investing in AA and above rated banks and money market instruments. As of Jun’26, the Fund’s Assets Under Management (AUM) stood at ~PKR 87.46bln, broadly stable compared to PKR 88.54bln as of Dec’25, reflecting a stable investor base and continued positioning within the money market fund category. In terms of asset allocation, approximately 57.5% of the portfolio was invested in Cash, ~32.1% in T-Bills, ~7.1% in placements with Banks/DFIs, ~1.7% in Certificates of Investment, and ~1.3% in Money Market Placements, with the remaining allocation held in other instruments. The allocation reflects a highly liquid strategy with predominant exposure to short-term money market and sovereign instruments. From a credit quality perspective, ~64.7% of the assets were invested in AAA-rated avenues, ~32.1% in Government Securities, and ~3% in AA-rated instruments, with the balance in other categories, indicating a strong credit profile consistent with the Fund’s low-risk mandate. As of Jun’26, the Fund’s Weighted Average Maturity (WAM) and duration stood at 31 days, effectively limiting exposure to interest rate and credit risk and supporting the Fund’s strong liquidity position. The unit holding pattern remained moderately concentrated, with the top 10 investors accounting for ~42.5% of total holdings, indicating relatively manageable redemption risk given the Fund’s highly liquid portfolio and short maturity profile. In terms of performance, the Fund delivered a return of 10.8% as of Jun’26, compared to the benchmark and peer average returns of 11.6% and 10.5%, respectively, reflecting underperformance of approximately 80bps against the benchmark while outperforming the peer average by approximately 30bps. The rating upgrade is supported by the Fund’s sustained scale, strong liquidity profile, high credit quality, short WAM and duration, and continued outperformance relative to its benchmark and peer group.
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).