⚡ Flash Summary

NBP Government Securities Savings Fund (NGSSF) reported a net income of Rs. 122.697 million for the quarter ended September 30, 2025. The fund’s size increased by 24% to Rs. 5,062 million. The unit price rose to Rs. 10.7768, showing a return of 9.3% p.a., compared to the benchmark return of 10.7% p.a. The fund maintains a stability rating of ‘AA-(f)’ by PACRA, reflecting a strong position in the government securities market.

📌 Key Takeaways

• 📈 Fund size increased by 24%, reaching Rs. 5,062 million.
• 💰 Net income totaled Rs. 122.697 million after deducting expenses.
• 📊 Unit price increased to Rs. 10.7768 as of September 30, 2025.
• ✅ Return on investment stood at 9.3% p.a.
• ⭐ Fund stability rating maintained at ‘AA-(f)’ by PACRA.
• 🏦 Total income for the period was Rs. 144.416 million.
• 💸 Total expenses amounted to Rs. 21.719 million.
• 🏛️ Asset allocation heavily weighted in PIBs (AAA) at 76.61%.
• 🧾 T-Bills (AAA) comprised 16.91% of the asset allocation.
• 💵 Cash equivalents & other net assets (AA+) represented 6.48% of the portfolio.
• 📌 State Bank of Pakistan (SBP) maintained the policy rate at 11%.
• 📉 Average inflation for Q1 FY26 eased to 4.2%, down from 9.2% last year.
• 🎯 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.
• ⚠️ Recent floods have disrupted food supply chains, causing prices to rise.

🎯 Investment Thesis

Maintain HOLD. NGSSF’s conservative investment strategy and focus on government securities make it suitable for risk-averse investors seeking steady returns. However, macroeconomic risks in Pakistan and the fund’s sensitivity to interest rate movements suggest limited upside potential. The current yield is attractive but further gains will be limited until external sector improves and overall policy measures implemented.