The Pakistan Credit Rating Agency Limited
17-Oct-25
Analyst
Usama Ali
usama.ali@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Apr-25
- Methodology | Rating Modifiers | Apr-25
- Assessment Framework | Stability Rating | Jul-25
Related Research
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PACRA Maintains Stability Rating of NBP Islamic Daily Dividend Fund
| Rating Type | Stability Rating | |
|
Current (17-Oct-25 ) |
Previous (17-Apr-25 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA+(f) | AA+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
NBP Islamic Daily Dividend Fund ('NIDDF' or 'the Fund') is a low-risk profile fund. The investment objective of the Fund is to provide competitive return along with daily dividend by investing in shariah compliant money market instruments. The assigned rating reflects the Fund's strong credit and interest rate risk profile emanating from its low-risk investment strategy. Regarding asset allocation as of end-June 2025, the Fund had invested ~73.3% in Cash, ~12.7% in GoP Ijarah Sukuk, ~8.4% in Short-Term Sukuk, ~4.4% in Bai Muajjal placements, and the remaining in others and receivables. In terms of credit quality, the Fund had allocated ~28.7% in AA+ rated avenues, ~27.2% to AAA, ~20.8% in AA, ~12.7% in Govt. Securities, ~4.3% in A1, ~4% in A1+, ~1% in AA-, with the remainder in other categories. The Fund's Weighted Average Maturity (WAM) stood at 17 days with a duration of 28 days at end-June 2025. With top-ten investor concentration at ~34.23%, the Fund faces moderate redemption pressure.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an 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 483bln as of June 2025, the Company manages a diversified portfolio of twenty-six open-end mutual funds, four voluntary pension schemes, and one exchange-traded fund (ETF).