⏸️ NBP-FUNDS: HOLD Signal (6/10) – Financial Results of NBP Income Fund of Fund for the quarter ended September 30, 2025

📌 Key Takeaways

• 📈 Policy rate maintained at 11% by the State Bank of Pakistan.
• Inflation rose to 5.6% in September but Q1 average inflation was 4.2%.
• 💸 NBP Cash Plan – I increased by 3% from Rs. 2,902 million to Rs. 2,997 million.
• 💰 Unit price of NBP Cash Plan – I increased to Rs. 10.3271, showing a return of 9.5% p.a.
• 📊 NBP Cash Plan – I benchmark return was 10.7% p.a.
• 📉 NBP Cash Plan – II decreased by 86% from Rs. 11,009 million to Rs. 1,546 million.
• ⭐ Unit price of NBP Cash Plan – II increased to Rs. 10.000, showing a return of 9.6% p.a.
• 📌 NBP Cash Plan – II benchmark return was 10.7% p.a.
• 📉 NBP Income Plan – I decreased by 86% from Rs. 1,948 million to Rs. 272 million.
• 💲 Unit price of NBP Income Plan – I increased to Rs. 10.1192, showing a return of 9.5% p.a.
• 🎯 NBP Income Plan – I benchmark return was 10.6% p.a.
• ✔️ Interim cash dividend of 2.40% approved for NBP Cash Plan – II
• ✔️ Interim cash dividend of 2.33% approved for NBP Income Plan – I
• 💼 Total income for NBP Cash Plan – I was Rs. 72.26 million.
• 🧾 Net income after expenses for NBP Cash Plan – I was Rs. 70.66 million.

🎯 Investment Thesis

Given the mixed performance and the fund’s underperformance against benchmarks, a HOLD recommendation is appropriate. The fund offers stable income, but investors should monitor its performance relative to its benchmarks and the evolving macroeconomic conditions.