Karachi: The Pakistan Credit Rating Agency Limited has maintained the stability rating of the NBP Financial Sector Income Plus Fund, a medium-risk investment vehicle designed to enhance income through financial sector investments. As of September 26, the fund's assets under management had grown to PKR 72,215 million, a significant increase from PKR 15,423 million in April, demonstrating notable investor confidence.

According to PACRA, the fund's asset allocation strategy focuses heavily on liquidity, with approximately 93% of its portfolio in cash bank deposits. Other investments include placements with banks and DFIs, money market placements, Treasury Bills, and other eligible instruments. The fund's credit quality remains robust, with a significant portion of assets in government securities and AAA-rated instruments, alongside a substantial allocation in A+ rated financial sector investments.

The fund's weighted average maturity stood at four days as of September 26, with a modified duration of 0.01 years, indicating minimal sensitivity to interest rate changes. Despite a concentrated unit holding pattern, with the top ten investors accounting for 73% of total holdings, the fund's liquidity position provides a buffer against redemption risks. The fund has also outperformed its benchmark, delivering an annualized return of 11.4% compared to the benchmark's 11.2%, highlighting its capacity to generate competitive risk-adjusted returns.

Future changes in investment policy or rating criteria could impact the fund's stability rating, PACRA noted.