⚡ Flash Summary

NBP Money Market Fund (NMMF) reported its financials for the quarter ended September 30, 2025. The fund experienced a decrease in size by 17% from Rs. 120,292 million to Rs. 99,374 million. Despite the decrease in fund size, the unit price increased from Rs. 10.0328 on June 30, 2025, to Rs. 10.2800 on September 30, 2025. The fund generated a total income of Rs. 3,168.76 million and net income of Rs. 2,815.37 million after deducting expenses.

📌 Key Takeaways

• 📉 Fund Size Reduction: NMMF’s size decreased by 17%, from Rs. 120,292 million to Rs. 99,374 million.
• 📈 Unit Price Increase: Unit price rose from Rs. 10.0328 to Rs. 10.2800 during the quarter.
• 📊 Return: The fund showed a return of 9.8% p.a., compared to the benchmark return of 10.7% p.a.
• 💰 Total Income: The Fund earned a total income of Rs. 3,168.76 million.
• 💸 Net Income: After expenses of Rs. 353.39 million, the net income was Rs. 2,815.37 million.
• 🏦 Policy Rate: The State Bank of Pakistan (SBP) maintained the policy rate at 11%.
• 📉 Average Inflation: Average inflation for Q1 FY26 eased to 4.2%, down from 9.2% last year.
• 🎯 FY26 Inflation Target: Average inflation for FY26 is projected to remain within the SBP’s 5%-7% target range.
• 🌱 GDP Growth: Real GDP growth for FY26 is projected between 3.0% and 3.5%.
• ✔️ Current Account Deficit: The current account deficit was USD 624 million for July-August.
• 💹 Forex Reserves: Foreign exchange reserves stood at USD 14.4 billion on September 26th.
• 🥇 Stability Rating: NMMF’s stability rating by PACRA is ‘AA (f)’.
• 📜 Investment Guidelines: The Fund has strict investment guidelines and invests in T-Bills, Bank Deposits, and Money Market instruments.
• ⏳ Maturity Limit: The Fund is not allowed to invest in any security exceeding six months maturity, with weighted average time to maturity capped at 90 days.

🎯 Investment Thesis

HOLD. Given the stability rating of ‘AA (f)’ awarded by PACRA, NMMF remains a relatively safe investment option for risk-averse investors seeking steady returns. While the fund size decreased, its ability to generate positive net income is encouraging. The fund underperformed its benchmark which is a cause for concern. Monitor the fund’s performance relative to its benchmark and peer funds to assess whether it remains a competitive option for investors. The fund is managed by NBP Funds which is rated AM1 by PACRA.