⚡ Flash Summary
NBP Islamic Government Securities Fund – I (NIGSP-III) reported its financial results for the quarter ended September 30, 2025. The fund size decreased by 10% from Rs. 2,807 million to Rs. 2,533 million. The unit price increased from Rs. 10.0433 to Rs. 10.2667, translating to an 8.8% annualized return, underperforming its benchmark return of 10.0%. The fund earned a total income of Rs. 68.20 million and a net income of Rs. 57.73 million after expenses.
📌 Key Takeaways
- 📉 Fund size decreased by 10%, from Rs. 2,807 million to Rs. 2,533 million.
- 📈 Unit price increased from Rs. 10.0433 to Rs. 10.2667.
- 📊 Annualized return of 8.8%, compared to a benchmark return of 10.0%.
- 💰 Total income earned during the period was Rs. 68.20 million.
- ✅ Net income after deducting expenses was Rs. 57.73 million.
- 🏛️ Policy rate maintained at 11% by the State Bank of Pakistan (SBP) to contain inflation.
- Inflation increased to 5.6% in September, from 3.0% in August.
- 📉 Average inflation for Q1 eased to 4.2%, down from 9.2% last year.
- 🎯 Average inflation for FY26 is projected to remain within the SBP’s 5%-7% target range.
- 🌳 Real GDP growth for FY26 is projected between 3.0% and 3.5%.
- deficit stood at USD 624 million for July-August.
- reserves stood at USD 14.4 billion on September 26th.
- The fund is categorized as a Shariah Compliant Income Fund with a stability rating of ‘AA (f)’ by PACRA.
🎯 Investment Thesis
HOLD. The fund provides stable, if unspectacular, returns. While the fund’s underperformance is concerning, its low-risk profile and Shariah compliance may be attractive to certain investors. Further analysis is needed to determine if the fund’s strategy can be improved to meet or exceed its benchmark.
Disclaimer: AI-generated analysis. Not financial advice.