Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has affirmed the stability rating of the NBP Islamic Money Market Fund (NIMMF), maintaining its position as a low-risk investment option. The fund aims to provide competitive returns with maximum capital preservation by investing in low-risk, Shariah-compliant instruments. As of December 2025, the fund's assets under management increased to approximately PKR 43,512 million from PKR 37,250 million in June 2025, indicating growth while adhering to its investment strategy.

According to PACRA, the fund's asset allocation strategy includes approximately 47.20% in cash holdings, 22.70% in money market placements (Bai Muajjal), 11.10% in bank and DFI placements, and 10.30% in short-term Sukuk. The remaining assets are distributed across other Shariah-compliant instruments. This allocation strategy supports the fund’s liquidity and stability, focusing on short-term avenues for consistent returns.

The credit quality of the fund's portfolio is strong, with 47.20% of investments in AAA-rated instruments, 31.80% in AA+ rated avenues, and 4.40% in government securities. The fund's duration was 34 days at the end of December 2025, which helps limit sensitivity to interest rate changes. Additionally, the weighted average maturity was 28 days, indicating a short-tenor strategy. The fund's unit holding pattern shows moderate concentration, with about 31.07% of units held by the top 10 investors.

In terms of performance, the NBP Islamic Money Market Fund achieved a 12-month trailing return of 10.40% as of December 2025, surpassing its benchmark return of 9.90%. This outperformance relative to the benchmark highlights the fund's effectiveness in delivering competitive returns. Future changes in investment policy or rating criteria could impact the fund's ratings.