⚡ Flash Summary

NBP Government Securities Fund – II (NGSP-VIII) reported a net income of Rs. 24.06 million for the quarter ended September 30, 2025, after deducting total expenses of Rs. 1.14 million from a total income of Rs. 25.20 million. The fund size closed at Rs. 2,132 million, with the unit price increasing to Rs. 10.0976 since inception. The fund’s return was 9.7% p.a., compared to its benchmark return of 10.7% p.a. The asset allocation includes 80.31% in PIBs, 15.00% in T-Bills, and 4.69% in cash and other net assets.

📌 Key Takeaways

• 📈 The fund size closed at Rs. 2,132 million.
• 💰 Net income for the period was Rs. 24.06 million.
• 💹 Unit price increased to Rs. 10.0976 since inception.
• 📊 The fund returned 9.7% p.a., vs. a benchmark of 10.7% p.a.
• 🇵🇰 The State Bank of Pakistan (SBP) maintained the policy rate at 11%.
• 📉 Average inflation for Q1 eased to 4.2%, down from 9.2% last year.
• 🎯 Average inflation for FY26 is projected to remain within SBP’s 5%-7% target range.
• 🌱 Real GDP growth for FY26 is projected between 3.0% and 3.5%.
• 🌐 Foreign exchange reserves stood at USD 14.4 billion on September 26th.
• 💸 The current account deficit was USD 624 million for July-August.
• ⚖️ The asset allocation includes PIBs (80.31%), T-Bills (15.00%), and cash (4.69%).
• 🏦 Rs. 3.55 trillion was raised via T-Bill auctions.
• 💹 Rs. 1.64 trillion and Rs. 558 billion were realized from fixed and floating-rate PIB auctions, respectively.
• 💰The Board of Directors approved an interim cash dividend of 0.165% of the opening ex-NAV.

🎯 Investment Thesis

Given the fund’s stable performance, focus on government securities, and alignment with macroeconomic policies, a HOLD recommendation is appropriate. The fund offers steady returns but may not outperform its benchmark significantly. It’s a suitable option for investors seeking stable income with minimal risk.