⚡ Flash Summary
UBL Funds released their quarterly report for September 2025, revealing fund performances amidst macroeconomic challenges. Headline inflation rebounded to 5.6% in September, yet the State Bank of Pakistan maintained its policy rate. The domestic equity market benchmarked by KSE 100 rose 32% during the quarter, with domestic institutional investors being net buyers. Several funds such as ULPF, ULF, UCF, UMMF, and others demonstrated varied investment strategies and returns.
📌 Key Takeaways
- 📈 KSE 100 increased by 32% in 1QFY26, reaching 165,493 points.
- 🏦 Banking, cement, and fertilizer sectors were major contributors to KSE 100’s growth, adding 14,418pts, 4,613pts and 3,820pts respectively.
- 💰 Domestic institutional investors were net buyers of USD 206 mn and USD 89 mn.
- 📊 Treasury bills auction participation surged to PKR 9.37 trillion, exceeding the target.
- 💸 Government raised approximately PKR 3.54 trillion through T-bill auctions.
- ⭐ 1-month T-bill attracted the highest interest, accounting for 41% of total bids.
- 📉 Inflation is expected to hover around ~7% in FY26.
- ⚠️ Downside risks from geopolitical tensions and evolving global trade tariffs.
- ✔️ S&P upgraded Pakistan to B- from CCC+ in July.
- 👍 Moody’s upgraded Pakistan’s rating to Caa1 (Stable) in August.
- ⚡ ULPF yielded a return of 9.92% p.a. during 3MFY26.
- 💸 ULPF’s total income was PKR 630.601 million.
- 💵 ULPF’s net income was PKR 560.453 million.
- 💰 ULPF net assets stood at PKR 20,095.781 million.
- ➕ VIS Credit Rating Company Limited reaffirmed ULPF’s rating as AA+ (f) on January 09, 2025.
🎯 Investment Thesis
Based on current conditions and the anticipated economic outlook, a HOLD recommendation appears reasonable. While there may be no immediate catalyst for strong upward price movement, the risks are well-defined, and the fund’s historical performance has been steady. Investors with lower risk tolerance looking for moderate return, may benefit.
Disclaimer: AI-generated analysis. Not financial advice.