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 Savings Fund
| Rating Type | Stability Rating | |
|
Current (17-Oct-25 ) |
Previous (18-Apr-25 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA-(f) | AA-(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
NBP Islamic Savings Fund ('NISAVF' or 'the Fund') is a moderate risk-profile fund. The investment objective of the Fund 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. The assigned rating reflects the Fund's low credit and interest rate risk profile emanating from its investment strategy. In terms of asset class, the Fund had allocated ~47.9% as Bank Deposit/ Cash, ~30.4% as Short Term Sukuks, ~12.5% as Certificate of Musharika, ~4.9% as Placement with Banks and DFIs (Islamic), and the balance in others and receivables at the end-Jun'25. In the perspective of credit quality the Fund had invested ~43.1% in AAA rated avenues, ~22.1% in A1+, ~12.5% in AA+, ~8.4% in A1, ~7.8% in AA-, ~1% in A, ~0.8% in AA, and the remaining in other rated avenues. The WAM of the Fund stood at 27 days at the end Jun'25, limiting the interest rate risk and credit risk of the Fund. The Duration of the Fund stood at 66 days, at the end Jun'25. At the end of Jun'25, the top ten investor concentration stood at ~33.54%, exposing the Fund to 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).