PACRA Maintains Stability Rating of NBP Islamic Savings Fund

NBP Islamic Savings Fund ("NBP-ISF" or "the Fund") is a moderate risk profile Fund. The Fund's objective is to earn a reasonable rate of return in a Shariah Compliant manner by investing primarily in Shariah Compliant money markets instruments and bank deposits. As of Jun’26, the Fund’s Assets Under Management (AUM) stood at ~PKR 7.85bln, down from PKR 10.47bln as of Dec’25, reflecting a contraction in fund size during the period while maintaining the Fund’s investment strategy. In terms of asset allocation, approximately 47.9% of the portfolio was invested in Cash, ~26.2% in Bai-Muajjal Placements, ~12.2% in Short Term Sukuk, and ~11.7% in Certificates of Musharika (COM), with the remaining portion allocated to other assets including receivables. The allocation reflects a highly liquid Shariah-compliant portfolio, with meaningful exposure to short-term Islamic money market and fixed-income instruments. From a credit quality perspective, ~35.8% of the assets were invested in A+ rated avenues, ~29.1% in AAA-rated avenues, ~11.7% in AA+ rated avenues, ~9.7% in A1+ rated instruments, and ~9.1% in AA- rated avenues, with the remaining portion in other categories including receivables. The Fund’s credit quality remained adequate and broadly aligned with the applicable rating criteria. At end-Jun’26, the Fund’s WAM stood at 20 days, while duration stood at 27 days, effectively limiting both credit and interest rate risk and supporting the Fund’s liquidity profile. The unit holding pattern remained moderately concentrated, with the top 10 investors accounting for ~45.6% of total holdings, indicating moderate potential redemption pressure. In terms of performance, the Fund delivered a return of 9.5% as of Jun’26, compared to the benchmark return of 9.6% and peer average return of 11.4%, indicating marginal underperformance relative to its benchmark and underperformance relative to 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).