PACRA Maintains Stability Rating of NBP Islamic Government Securities Plan – III

NBP Islamic Government Securities Plan III ('NIGSP-III' or the 'Plan') is under NBP Islamic Government Securities Fund. Plan's objective is to provide investors with attractive returns by investing primarily in Shariah Compliant Government Securities. As of Jun’26, the Plan’s Assets Under Management (AUM) stood at ~PKR 887mln, down from PKR 1.71bln as of Dec’25, reflecting a significant contraction in fund size during the period while maintaining the Plan’s investment strategy. In terms of asset allocation, approximately 92.6% of the portfolio was invested in GoP Ijarah Sukuk, ~4.8% in Cash, and the remaining ~2.6% in other instruments including receivables. The allocation reflects a predominantly sovereign-focused Shariah-compliant investment strategy, with a limited cash allocation providing some liquidity support. From a credit quality perspective, ~92.6% of the assets were invested in AAA-rated avenues, ~4.8% in AA- rated instruments, and the remaining ~2.6% in other rated avenues, indicating a strong credit quality profile supported by predominant exposure to sovereign-backed securities. At end-Jun’26, the Plan’s WAM stood at 730 days, while duration stood at 215 days, reflecting high exposure to longer-tenor instruments and consequently elevated sensitivity to interest rate movements. However, the credit risk remains manageable given the Plan’s significant exposure to AAA-rated avenues. The unit holding pattern reflected moderate concentration, with the top 10 investors accounting for ~52.9% of total holdings, indicating a moderate level of potential redemption pressure. In terms of performance, the Plan delivered a return of 14.2% as of Jun’26, compared to the benchmark return of 10.3% and peer average return of 13.5%, 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).