⚡ Flash Summary
NBP Islamic Principal Protection Fund – I (NIPPF-I) reported its financial results for the quarter ended September 30, 2025. The KMI-30 Index showed a strong 33% return during the quarter, building upon gains from previous fiscal years. Since its inception on September 25, 2025, the fund’s NAV increased by 0.3% to Rs. 10.0317, underperforming the benchmark’s 1.0% increase by 0.7%. The fund earned a total income of Rs. 4.04 million, with a net income of Rs. 3.16 million after deducting expenses.
📌 Key Takeaways
- 📈 KMI-30 Index sustained upward trend, delivering a strong 33% return in Q1FY26.
- 📊 Inflation averaged 4.2% during the quarter, down from 9.2% 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.
- 🌱 FY25 GDP growth revised upward to 3.04% from 2.68%.
- 💼 Mutual Funds, Individuals, and Companies emerged as largest net buyers.
- 💸 Short-term sukuks saw notable activity with fresh issuance.
- ⚖️ NIPPP-I’s NAV increased by 0.3% from Rs. 10.0000 to Rs. 10.0317 since inception.
- ⚠️ The fund underperformed benchmark by 0.7% during the period.
- 💲 The size of the Plan is Rs.1,264 million.
- 🤑 Total income of Rs. 4.04 million was earned during the period.
- 📉 Net income amounted to Rs. 3.16 million after deducting expenses.
🎯 Investment Thesis
Given the fund’s underperformance of its benchmark and the relatively short period since its inception, a HOLD recommendation is appropriate. Investors should monitor the fund’s performance and asset allocation strategy in subsequent quarters. Further analysis is needed to determine whether the fund can consistently meet its objective of principal protection while also providing competitive returns.
Disclaimer: AI-generated analysis. Not financial advice.