PACRA Assigns Initial Stability Rating to NBP Financial Sector Income Plus Fund

NBP Financial Sector Income Plus Fund ("NBP-FSIPF" or "the Fund") is categorized under a medium-risk profile, with the objective of providing income enhancement through investment in financial sector TFCs/Sukuks, bank deposits, and short-term money market instruments. The Fund's investment strategy is centered on selective exposure across the financial sector credit spectrum, making it suitable for investors seeking above-money-market yields while accepting moderate credit and interest rate risk. The Fund was successfully launched on April 20, 2026, receiving total IPO subscriptions of approximately PKR 15,423mln, reflecting strong initial investor response and strong market confidence in the Fund's income-oriented proposition. The portfolio is currently in the process of deployment, with asset allocation expected to be fully aligned with the committed investment strategy over the coming weeks. From a targeted credit quality perspective, the Fund's projected asset allocation is structured around ~25% in AAA rated instruments, ~50% in A+ rated instruments, and ~25% in A rated instruments, with all investments confined to financial institutions, primarily commercial banks and microfinance banks carrying a credit rating of A and above. As per management's committment, the Fund's maximum permissible Weighted Average Maturity (WAM) and duration shall not exceed one year, reflecting a short-to-medium duration bias that effectively limits interest rate sensitivity and supports adequate liquidity management. The Fund will invest primarily in bank deposits, and given the absence of formal single-counterparty exposure limits applicable to such instruments, portfolio diversification will be governed through the Fund's internal credit approval and risk management framework. From an investor composition standpoint, the Fund's initial unit holder base is concentrated in private limited companies at ~99.52%, with individuals accounting for the remaining ~0.48%, reflecting a predominantly institutional investor base consistent with the Fund's target market. Notably, the Fund's initial investor base carries no related party exposure. Investor concentration is expected to diversify progressively as the Fund grows over time, given its open-end and perpetual nature. All requisite internal and regulatory approvals, including the Offering Document, are in place. The Fund's performance track record will be established over the coming periods as the portfolio reaches full deployment, and its ability to consistently deliver on its targeted credit quality commitments and income objectives will be a key consideration in future rating assessments.
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 524.5bln as of December 2025, the Company manages a diversified portfolio of twenty-six open-end mutual funds, four voluntary pension schemes, and one exchange-traded fund (ETF).