Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has reaffirmed the stability rating of the NBP Riba Free Savings Fund, maintaining its moderate risk profile. The fund aims to preserve capital while providing a reasonable rate of return through investments in Shariah-compliant banks and money market/debt securities.

According to PACRA, the fund's assets under management (AUM) stood at approximately PKR 20,073 million as of December 2025, a decrease from PKR 31,620 million in June 2025, due to significant net outflows. Despite this, the fund has adhered to its investment strategy, maintaining a diversified and liquid portfolio. Asset allocation includes around 49% in bank deposits, 17.8% in placements with non-banking financial companies, 14.8% in placements with banks and development financial institutions, and 9.3% in Bai-Muajjal placements, with the remaining in other instruments.

The fund's credit quality is reflected in its investment in high to mid-tier rated instruments, with approximately 34.9% in AAA-rated avenues, 34.3% in AA- rated instruments, and 8.8% in AA+ rated avenues. This composition suggests a moderate credit risk exposure. The fund's duration and weighted average maturity stood at 19 days and 16 days, respectively, indicating low sensitivity to interest rate changes and effective liquidity management.

The unit holding pattern shows a moderate concentration, with about 24.74% of units held by the top 10 investors. The fund reported a 12-month trailing return of 10.3% as of December 2025, outperforming its benchmark return of 10.1%. Future adjustments in the investment policy or rating criteria could impact the fund's rating.