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

📌 Key Takeaways

• 📈 NBP Mustahkam Fund – NBP Fixed Term Munafa Plan – IVA (NFTMP-IVA) size increased by 3% to Rs. 10,789 million.
• 💰 Unit price of NFTMP-IVA increased to Rs. 10.2749, showing a return of 10.6% p.a.
• 📉 NFTMP-IVA’s return underperformed its benchmark of 12.2% p.a.
• 💸 NFTMP-IVA earned a total income of Rs. 287.97 million during the year.
• Expenses of NFTMP-IVA were Rs. 8.48 million, resulting in a net income of Rs. 279.49 million.
• 📊 NFTMP-IVA’s assets are heavily allocated to T-Bills (101.60%).
• 🏦 NBP Mustahkam Fund – NBP Fixed Term Munafa Plan – IIB (NFTMP-IIB) closed at Rs. 13,316 million.
• ⭐ Unit price of NFTMP-IIB increased to Rs. 10.0759, showing a return of 10.7% p.a.
• ✅ NFTMP-IIB’s return closely tracked its benchmark of 10.8% p.a.
• 💸 NFTMP-IIB earned a total income of Rs. 123.65 million during the year.
• Expenses of NFTMP-IIB were Rs. 3.43 million, resulting in a net income of Rs. 120.22 million.
• 💯 NFTMP-IIB’s assets are entirely allocated to Cash Equivalents & Other Net Assets (AAA).
• ✔️ The State Bank of Pakistan (SBP) maintained the policy rate at 11% to contain inflation.
• Inflation rose to 5.6% in September, but the average for Q1 eased to 4.2%.
• Foreign exchange reserves stood at USD 14.4 billion on September 26th.

🎯 Investment Thesis

Given the slightly underperforming IVA plan compared to its benchmark, alongside the IIB plan tracking its benchmark closely, and considering the stabilizing macroeconomic environment, a HOLD recommendation is appropriate for NBP Mustahkam Fund. Further improvements in investment strategy and macroeconomic conditions may warrant a more positive outlook. With more details about the portfolio’s holdings, a stronger assessment could be determined. It would be more suitable for risk adverse investors.