⚡ Flash Summary

NBP Islamic Money Market Fund (NIMMF) reported a 35% increase in fund size, growing from Rs. 37,250 million to Rs. 50,207 million for the quarter ended September 30, 2025. The fund’s unit price increased to Rs. 10.4189, resulting in an annualized return of 9.6%, slightly below the benchmark return of 9.7%. The fund’s objective is to provide better returns than offered by Islamic Banks. The asset allocation includes investments in Cash Equivalents, Bai Moajjal, Gop Ijara Sukuks, Corporate Sukuks, and Term Deposit Receipts.

📌 Key Takeaways

• 📈 Fund size increased by 35% to Rs. 50,207 million.
• 💰 Unit price rose to Rs. 10.4189, yielding 9.6% p.a. return.
• 🎯 Return slightly below benchmark of 9.7% p.a.
• ⭐ Fund stability rating is ‘AA (f)’ by PACRA.
• 🏦 Aims to outperform Islamic Banks’ profit rates.
• ⚠️ Maximum security maturity limited to six months.
• ⏳ Weighted average time to maturity cannot exceed 90 days.
• 💼 Total income for the period: Rs. 1,238.13 million.
• 🧾 Total expenses: Rs. 98.54 million.
• ✅ Net income: Rs. 1,139.59 million.
• 📊 Asset allocation includes Cash Equivalents (30.64%), Bai Moajjal (27.19%), and Gop Ijara Sukuks (14.09%).
• 🏦 Policy rate maintained at 11% by the State Bank of Pakistan.
• 📉 Average inflation eased to 4.2%, down from 9.2% last year.
• 🎯 FY26 inflation targeted within 5%-7% range.
• 🌱 Real GDP growth for FY26 projected between 3.0% and 3.5%.

🎯 Investment Thesis

Given the fund’s strong growth, stable returns, and diversified asset allocation, a HOLD recommendation is appropriate. The NIMMF’s stable rating by PACRA and its focus on Shariah-compliant investments make it a suitable option for risk-averse investors seeking stable returns. However, the underperformance against the benchmark warrants closer monitoring of investment strategies and expense management. Until more data regarding future investments are available, a HOLD recommendation is best.