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

📌 Key Takeaways

• 📈 KMI-30 Index delivered a strong 33% return during 1QFY26.
• 📉 Inflation averaged 4.2% during the quarter, down from 9.2% a year earlier.
• ⚠️ Current account deficit widened to USD 624 million during 2MFY26.
• ✅ FX reserves remained stable at USD 14.4 billion as of September 26, 2025.
• 🤝 IMF’s second review under the Extended Fund Facility (EFF) concluded.
• ⬆️ Government revised FY25 GDP growth upward to 3.04%.
• ⬆️ Fund size increased by 51.0% to Rs. 5,987 million.
• ⬆️ Unit price increased by 24.8% to Rs. 22.1826.
• 📉 Fund underperformed its Benchmark by 8.4% during the period.
• ⬆️ NAV of the Fund increased by 290.6% since inception.
• ⚠️ Fund underperformed the Benchmark by 27.1% since inception.
• 💰 Net income for the period was Rs. 1,018.918 million.
• 🏢 Management fee for Equity Scheme shall not exceed 3.00% per annum of the average daily net assets.
• 📊 The TER of the Fund as at September 30, 2025 is 4.16%.

🎯 Investment Thesis

HOLD. While NBP Islamic Energy Fund has demonstrated growth in size and generated positive net income, its underperformance relative to its benchmark necessitates a cautious approach. The fund’s asset allocation and stock selection strategies should be reviewed to identify areas for improvement. A more detailed sector comparison and valuation analysis are needed to assess the fund’s potential for future growth. Given the current market conditions and macroeconomic risks, a HOLD recommendation is appropriate until the fund demonstrates consistent outperformance.