Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has affirmed the stability rating of the NBP Government Securities Liquid Fund (NGSLF), a low-risk investment fund primarily focused on government securities. The fund aims to provide optimal returns with minimal risk while ensuring liquidity for its unit holders.

According to PACRA, the fund's assets under management (AUM) decreased significantly from approximately PKR 12,169 million in June 2025 to around PKR 6,084 million by December 2025, reflecting notable net outflows. Despite this decline, the fund maintained its investment strategy, with a conservative asset allocation heavily weighted towards Treasury Bills at 73.80%, followed by cash holdings at 17.50%, and placements with banks and development finance institutions at 8.10%.

The credit quality of the fund's portfolio was characterized by 73.80% investment in government securities, 25.50% in AAA-rated instruments, and a minimal 0.20% in AA- rated avenues. This composition underscores the fund's strong credit quality and minimal credit risk exposure. The fund's duration and weighted average maturity were both recorded at 46 days, indicating a short-term investment approach with low sensitivity to interest rate changes.

Despite its conservative strategy, the fund reported a 12-month trailing return of 10.50% as of the end of December 2025, which fell short of its benchmark return of 11.10%, highlighting a slight underperformance. The unit holding pattern showed moderate concentration, with 55.28% of units held by the top ten investors.

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