⚡ 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.

⚡ 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.

⚡ Flash Summary

NBP Mustahkam Fund’s report for the quarter ended September 30, 2025, reveals a mixed performance. The fund’s NBP Fixed Term Munafa Plan – IVA increased in size by 3% to Rs. 10,789 million, with a unit price increase reflecting a 10.6% p.a. return, underperforming its benchmark of 12.2%. The NBP Fixed Term Munafa Plan – IIB closed at Rs. 13,316 million, achieving a 10.7% p.a. return against a benchmark of 10.8%. Overall, macroeconomic conditions are stabilizing with SBP prioritizing price stability.

📌 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.