Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has announced that it will maintain the stability rating of the NBP Financial Sector Income Fund (NFSIF), a medium risk profile fund. The fund aims to enhance income and preserve capital through investments in high-quality financial sector Term Finance Certificates (TFCs), Sukuk, bank deposits, and short-term money market instruments. As of December 2025, the fund's assets under management (AUM) stood at approximately PKR 69,238 million, reflecting moderate net outflows since June 2025 while adhering to its investment strategy.

According to PACRA, the fund's asset allocation strategy includes maintaining about 55.50% in cash holdings, 14.40% in placements with banks and Development Finance Institutions (DFIs), 11.20% in Pakistan Investment Bonds (PIBs), and 8.80% in Treasury Bills (T-Bills). The fund holds marginal exposures in Market Treasury Securities (MTS), Government of Pakistan Ijarah, and commercial papers, with the remaining portion allocated to other instruments. This allocation indicates a liquidity-driven strategy complemented by selective exposure to sovereign and financial sector instruments aimed at enhancing returns.

The credit quality of the fund's portfolio includes investments of around 30.10% in A+ rated avenues, 20.40% in government securities, and 15.60% in A rated instruments. The fund's duration at the end of December 2025 was 61 days, indicating low to moderate sensitivity to interest rate changes. The weighted average maturity (WAM) was recorded at 146 days, reflecting a balanced maturity profile. The unit holding pattern shows moderate concentration, with nearly 49.78% of units held by the top ten investors. The fund's performance over a 12-month period reported a trailing return of 11.10%, aligning with the benchmark return of the same percentage.

PACRA noted that any significant changes in the fund's investment policy or rating criteria could potentially impact the fund's ratings in the future.