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

📌 Key Takeaways

• 📈 The KMI-30 Index delivered a strong 33% return during 1QFY26.
• 💰 Inflation averaged 4.2% during the quarter.
• 🌍 The current account deficit widened to USD 624 million during 2MFY26.
• 🏦 Foreign exchange reserves remained stable at USD 14.4 billion as of Sep 26, 2025.
• 🤝 The IMF’s second review under the Extended Fund Facility (EFF) concluded.
• 🌱 The government revised FY25 GDP growth upward to 3.04%.
• ⬆️ The size of NBP Islamic Samaya Izafa Fund increased by 36.1% to Rs. 2,181 million.
• 💸 The unit price of NBP Islamic Samaya Izafa Fund increased by 25.5% to Rs. 34.9327.
• 📉 The Fund underperformed its Benchmark by 2.6% during the period under review.
• 📊 Since inception, the NAV of the Fund has increased by 1,271.5%.
• 💸 The Fund earned a total income of Rs. 443.41 million during the year.
• ✅ Net income is Rs. 426.02 million after deducting total expenses of Rs. 17.39 million.
• 🏢 Oil & Gas Exploration Companies represented 29.4% of asset allocation.

🎯 Investment Thesis

Given the fund’s underperformance relative to its benchmark, and reliance on financing activities, a HOLD recommendation is appropriate. Further monitoring is needed to assess the fund’s ability to improve its investment strategy and generate better returns. A BUY recommendation could be considered if the fund demonstrates consistent outperformance and improved expense management. A SELL recommendation may be considered if the underperformance persists, or if there are significant changes in the macroeconomic environment.