NBP-FUNDS

⚡ Flash Summary

NBP Islamic Energy Fund (NIEF) reported a net income of Rs. 1,018.918 million for the quarter ended September 30, 2025, after deducting total expenses of Rs. 46.496 million from a total income of Rs. 1,065.414 million. The fund’s size increased by 51.0% during the period, reaching Rs. 5,987 million. However, the fund underperformed its benchmark (KMI-30 Index) by 8.4% during the period. The unit price increased by 24.8% to Rs. 22.1826, while the benchmark decreased by 33.2%.

📌 Key Takeaways

• 📈 KMI-30 Index delivered a strong 33% return during 1QFY26.
• 📉 Inflation averaged 4.2% during the quarter, down from 9.2% a 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.
• ⬆️ Government revised FY25 GDP growth upward to 3.04%.
• ⬆️ Fund size increased by 51.0% to Rs. 5,987 million.
• ⬆️ Unit price increased by 24.8% to Rs. 22.1826.
• 📉 Fund underperformed its Benchmark by 8.4% during the period.
• ⬆️ NAV of the Fund increased by 290.6% since inception.
• ⚠️ Fund underperformed the Benchmark by 27.1% since inception.
• 💰 Net income for the period was Rs. 1,018.918 million.
• 🏢 Management fee for Equity Scheme shall not exceed 3.00% per annum of the average daily net assets.
• 📊 The TER of the Fund as at September 30, 2025 is 4.16%.

🎯 Investment Thesis

HOLD. While NBP Islamic Energy Fund has demonstrated growth in size and generated positive net income, its underperformance relative to its benchmark necessitates a cautious approach. The fund’s asset allocation and stock selection strategies should be reviewed to identify areas for improvement. A more detailed sector comparison and valuation analysis are needed to assess the fund’s potential for future growth. Given the current market conditions and macroeconomic risks, a HOLD recommendation is appropriate until the fund demonstrates consistent outperformance.

⚡ Flash Summary

NBP Islamic Government Securities Fund – I (NIGSP-III) reported its financial results for the quarter ended September 30, 2025. The fund size decreased by 10% from Rs. 2,807 million to Rs. 2,533 million. The unit price increased from Rs. 10.0433 to Rs. 10.2667, translating to an 8.8% annualized return, underperforming its benchmark return of 10.0%. The fund earned a total income of Rs. 68.20 million and a net income of Rs. 57.73 million after expenses.

📌 Key Takeaways

• 📉 Fund size decreased by 10%, from Rs. 2,807 million to Rs. 2,533 million.
• 📈 Unit price increased from Rs. 10.0433 to Rs. 10.2667.
• 📊 Annualized return of 8.8%, compared to a benchmark return of 10.0%.
• 💰 Total income earned during the period was Rs. 68.20 million.
• ✅ Net income after deducting expenses was Rs. 57.73 million.
• 🏛️ Policy rate maintained at 11% by the State Bank of Pakistan (SBP) to contain inflation.
• Inflation increased to 5.6% in September, from 3.0% in August.
• 📉 Average inflation for Q1 eased to 4.2%, down from 9.2% last year.
• 🎯 Average inflation for FY26 is projected to remain within the SBP’s 5%-7% target range.
• 🌳 Real GDP growth for FY26 is projected between 3.0% and 3.5%.
• deficit stood at USD 624 million for July-August.
• reserves stood at USD 14.4 billion on September 26th.
• The fund is categorized as a Shariah Compliant Income Fund with a stability rating of ‘AA (f)’ by PACRA.

🎯 Investment Thesis

HOLD. The fund provides stable, if unspectacular, returns. While the fund’s underperformance is concerning, its low-risk profile and Shariah compliance may be attractive to certain investors. Further analysis is needed to determine if the fund’s strategy can be improved to meet or exceed its benchmark.

⚡ Flash Summary

NBP Islamic Income Fund (NBP-IIF) reported its unaudited condensed interim financial statements for the quarter ended September 30, 2025. The State Bank of Pakistan (SBP) maintained the policy rate at 11% during the quarter to manage inflation, which averaged 4.2%. The fund’s size decreased by 16% to Rs. 11,321 million, while the unit price increased from Rs. 10.1348 to Rs. 10.3483, showing a return of 8.4% p.a.

📌 Key Takeaways

• 💰 SBP maintained policy rate at 11% to contain inflation.
• 📈 Headline inflation rose to 5.6% in September, but Q1 average eased to 4.2%.
• 🎯 FY26 average inflation projected within SBP’s 5-7% target range.
• 📉 Real GDP growth for FY26 projected between 3.0% and 3.5%.
• deficit was USD 624 million for July-August.
• 🏦 Foreign exchange reserves stood at USD 14.4 billion on September 26th.
• ✅ Fiscal performance improved with a primary surplus expected in Q1 FY26.
• 📊 NBP-IIF categorized as Shariah Compliant Income Fund with ‘A+ (f)’ rating by PACRA.
• 💸 Fund size decreased by 16% from Rs. 13,489 million to Rs. 11,321 million.
• 📈 Unit price increased from Rs. 10.1348 to Rs. 10.3483, showing an 8.4% p.a. return.
• 💹 Benchmark return was 9.5% p.a. for the same period.
• 💸 Fund earned a total income of Rs. 294.22 million during the period.
• ➖ Total expenses were Rs. 52.96 million, resulting in a net income of Rs. 241.26 million.

🎯 Investment Thesis

Given the current macroeconomic conditions and the fund’s performance, a HOLD recommendation is appropriate. While the fund provides a stable return, it underperformed its benchmark. Further, the decline in fund size and prevailing risks warrants caution. A BUY signal would be considered if the fund consistently outperforms its benchmark and demonstrates growth in fund size with effective risk management.

⚡ Flash Summary

NBP Islamic Mahana Amdani Fund (NIMAF) reported its financial results for the quarter ended September 30, 2025. The fund size increased by 18% to Rs. 12,681 million. The unit price rose to Rs. 10.3521, resulting in a 9.1% annualized return, slightly below the benchmark of 9.5%. The fund generated a total income of Rs. 328.16 million and a net income of Rs. 283.32 million after expenses.

📌 Key Takeaways

• 📈 Fund size increased by 18% from Rs. 10,711 million to Rs. 12,681 million.
• 💰 Unit price increased from Rs. 10.1208 to Rs. 10.3521.
• 📊 Annualized return of 9.1%, compared to a benchmark return of 9.5%.
• 💸 Total income for the quarter was Rs. 328.16 million.
• расходы составили Rs. 44.84 million.
• ✅ Net income after expenses was Rs. 283.32 million.
• 📜 The fund is categorized as a Shariah Compliant Income Fund with a stability rating of ‘A+(f)’ by PACRA.
• 🏛️ The fund invests in Shariah Compliant money market and debt avenues.
• 🚫 The fund is not authorized to invest in equities.
• ⚖️ Asset allocation includes GOP Ijara Sukuks (31.74%), Bai-Moajal (29.62%), Cash Equivalents & Other Net Assets (28.57%), and Corporate Sukuks Certificates (10.07%).
• ✔️ Fund maintains strong capacity to maintain relative stability in returns with very low exposure to risks.
• 🏦 Investments in savings accounts carry profit at rates ranging from 0.10% to 10.80% per annum.
• 🏢 Management fee for an Income Scheme shall not exceed 1.5% per annum of the average daily net assets.

🎯 Investment Thesis

HOLD. NIMAF is a well-managed Shariah-compliant income fund that offers a stable return. While the return was slightly below the benchmark, the fund’s growth and stability make it a reasonable HOLD for investors seeking consistent income. Price target will depend on the peer comparison and macro-economic changes.

⚡ 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.

⚡ Flash Summary

NBP Islamic Sarmaya Izafa Fund (NISIF) reported its financial results for the quarter ended September 30, 2025. The fund’s size increased by 36.1% to Rs. 2,181 million, and the unit price rose by 25.5% to Rs. 34.9327. However, the fund underperformed its benchmark by 2.6% during the quarter. The total income for the year stood at Rs. 443.41 million, with a net income of Rs. 426.02 million after expenses.

📌 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.

⚡ Flash Summary

NBP Islamic Savings Fund (NBP-ISF) reported its financial results for the quarter ended September 30, 2025. The fund’s size increased by 36% to Rs. 10,788 million. The unit price rose from Rs. 9.5995 on June 30, 2025, to Rs. 9.8227 on September 30, 2025, indicating a 9.2% p.a. return, slightly below the benchmark return of 9.5% p.a. The fund earned a total income of Rs. 343.26 million and a net income of Rs. 294.77 million after expenses.

📌 Key Takeaways

• 📈 Fund size increased by 36% from Rs. 7,912 million to Rs. 10,788 million.
• 💰 Unit price increased from Rs. 9.5995 to Rs. 9.8227.
• 📊 Return of 9.2% p.a. compared to a benchmark return of 9.5% p.a.
• 💸 Total income for the period was Rs. 343.26 million.
• 📉 Net income was Rs. 294.77 million after deducting expenses of Rs. 48.49 million.
• ⭐ NBP-ISF has a ‘AA- (f)’ stability rating from PACRA.
• 🏦 The State Bank of Pakistan (SBP) maintained the policy rate at 11% during the quarter.
• Inflation averaged 4.2% for Q1, down from 9.2% last year.
• 🎯 FY26 average inflation is projected to be within the SBP’s 5%-7% target range.
• 🌱 Real GDP growth for FY26 is projected between 3.0% and 3.5%.
• 💲 Foreign exchange reserves stood at USD 14.4 billion on September 26th.
• ✔️ Fiscal performance improved with a primary surplus expected in Q1 FY26.
• 📜 Asset allocation includes cash equivalents (53.20%), sukuks (17.58%), COI (16.24%), and term deposit receipts (12.98%).

🎯 Investment Thesis

The NBP Islamic Savings Fund is a HOLD due to its solid asset growth and diversified portfolio, offset by a slight underperformance against its benchmark. The fund’s exposure to cash equivalents is substantial. While its rating and Shariah compliance are positive factors, the fund should focus on optimizing its asset allocation to enhance returns. A closer examination of the expense ratio and its impact on net income is warranted.