NBP-FUNDS

⚡ Flash Summary

NBP Financial Sector Income Fund (NFSIF) reported its financial results for the quarter ended September 30, 2025. The fund’s size decreased by 8% from Rs. 75,068 million to Rs. 68,861 million. The unit price increased from Rs. 10.6788 on June 30, 2025, to Rs. 10.9457 on September 30, 2025, resulting in an annualized return of 9.9% against a benchmark return of 10.6%. The fund earned a total income of Rs. 2,236.06 million and a net income of Rs. 1,969.80 million after expenses.

📌 Key Takeaways

• 📉 Fund size decreased by 8%, from Rs. 75,068 million to Rs. 68,861 million.
• 📈 Unit price increased from Rs. 10.6788 to Rs. 10.9457 during the quarter.
• 💰 Annualized return of 9.9% p.a. vs. benchmark return of 10.6% p.a.
• 💸 Total income for the period was Rs. 2,236.06 million.
• ✅ Net income, after expenses of Rs. 266.26 million, was Rs. 1,969.80 million.
• 🏦 Invests primarily in financial sector debt securities and instruments (minimum 70%).
• ⭐ Minimum debt security rating of AA- to minimize credit risk.
• ⏱️ Duration of the fund is capped at one year to minimize interest rate risk.
• 🏦 25% of assets are in T-Bills or saving accounts for liquidity.
• ⭐ Fund stability rating is ‘A+ (f)’ by PACRA.
• Inflation rose to 5.6% in September from 3.0% in August, but average inflation for Q1 eased to 4.2%, down from 9.2% last year.
• Current account deficit was USD 624 million for July-August.
• Foreign exchange reserves stood at USD 14.4 billion on September 26th and are projected to reach USD 17 billion by June-26.

🎯 Investment Thesis

Given the fund’s income focus and current economic environment, a HOLD recommendation is appropriate. The fund provides a stable income stream with managed risk. However, the slightly lower than benchmark return and the decrease in fund size warrant caution. A more detailed analysis of the fund’s holdings and expense ratio is needed before considering a BUY recommendation.

⚡ Flash Summary

NBP Government Securities Fund-I (NGSP-IV) reported a decrease in fund size by 12% from Rs. 9,439 million to Rs. 8,306 million for the quarter ended September 30, 2025. However, the unit price increased from Rs. 10.0718 on June 30, 2025, to Rs. 10.3034 on September 30, 2025, reflecting a 9.1% annualized return, although it underperformed its benchmark return of 10.7% p.a. The fund’s total income for the period was Rs. 249.84 million, with a net income of Rs. 217.83 million after deducting expenses of Rs. 32.01 million.

📌 Key Takeaways

• 📉 Fund size decreased by 12% from Rs. 9,439 million to Rs. 8,306 million.
• 📈 Unit price increased from Rs. 10.0718 to Rs. 10.3034.
• 🎯 Annualized return of 9.1% p.a., underperforming the 10.7% benchmark.
• 💰 Total income for the period was Rs. 249.84 million.
• ✅ Net income was Rs. 217.83 million after expenses.
• 🏦 Expenses totaled Rs. 32.01 million.
• ⭐ Stability rating by PACRA is ‘AA (f)’, indicating strong stability.
• 📊 Asset allocation: 52.42% in T-Bills (AAA), 52.04% in PIBs, and 4.46% in Cash Equivalents & Other Net Assets (AA+).
• 💼 Management fee is capped at 1.50% per annum of average daily net assets.
• 🇵🇰 The State Bank of Pakistan (SBP) maintained the policy rate at 11% to contain inflation.
• ⬆️ Headline inflation rose to 5.6% in September, but average Q1 inflation eased to 4.2%.
• 🌱 Real GDP growth for FY26 is projected between 3.0% and 3.5%.
• 💲 The current account deficit was USD 624 million for July-August.
• 💵 Foreign exchange reserves stood at USD 14.4 billion on September 26th and are projected to reach USD 17 billion by June-26.

🎯 Investment Thesis

HOLD. NBP Government Securities Fund-I has delivered moderate returns, but has underperformed its benchmark. Given the current macroeconomic environment and the fund’s conservative investment strategy, HOLD the fund and monitor its performance against its peers. Look for opportunities to rebalance the portfolio to take advantage of changing market conditions.

⚡ Flash Summary

NBP Government Securities Liquid Fund (NGSLF) reported its financial results for the quarter ended September 30, 2025. The fund’s size decreased by 38% from Rs. 12,169 million to Rs. 7,549 million. The unit price increased from Rs. 10.3093 to Rs. 10.5585, showing a return of 9.6% p.a., compared to the benchmark return of 10.7% p.a. Total income for the year was Rs. 336.76 million, and after deducting expenses of Rs. 44.03 million, the net income amounted to Rs. 292.73 million.

📌 Key Takeaways

• 📉 Fund size decreased by 38%, from Rs. 12,169 million to Rs. 7,549 million.
• 📈 Unit price increased from Rs. 10.3093 to Rs. 10.5585.
• 📊 Return of 9.6% p.a. achieved, compared to benchmark return of 10.7% p.a.
• 💰 Total income for the year reached Rs. 336.76 million.
• 💸 Net income after expenses stood at Rs. 292.73 million.
• ✅ Fund’s stability rating is ‘AAA (f)’ awarded by PACRA, reflecting strong credit and liquidity.
• 🏛️ Fund invests primarily in Government securities (T-Bills), with a minimum of 70% investment.
• ⚠️ Headline inflation rose to 5.6% in September from 3.0% in August.
• 🎯 Average inflation for Q1 eased to 4.2%, down from 9.2% last year.
• 🌍 Real GDP growth for FY26 is projected between 3.0% and 3.5%.
• 💹 Current account deficit for July-August was USD 624 million.
• 🏦 Foreign exchange reserves stood at USD 14.4 billion on September 26th.
• ⚖️ Fiscal performance improved, with a primary surplus expected in Q1 FY26.
• auctions raised Rs. 3.55 trillion against maturity of Rs. 3.95 trillion and target of Rs. 2.98 trillion

🎯 Investment Thesis

The fund’s focus on government securities offers stability but limits potential for high returns. Given the current economic climate and the fund’s solid risk profile, a HOLD recommendation is appropriate. The fund is a suitable option for investors seeking low-risk, steady returns and high liquidity. Any price target requires economic projections

⚡ Flash Summary

NBP Income Fund of Fund reported its financial results for the quarter ended September 30, 2025. The State Bank of Pakistan maintained the policy rate at 11% during the quarter. Headline inflation rose to 5.6% in September, but average inflation for Q1 eased to 4.2%. The fund’s performance is net of management fees and other expenses.

📌 Key Takeaways

• 📈 Policy rate maintained at 11% by the State Bank of Pakistan.
• Inflation rose to 5.6% in September but Q1 average inflation was 4.2%.
• 💸 NBP Cash Plan – I increased by 3% from Rs. 2,902 million to Rs. 2,997 million.
• 💰 Unit price of NBP Cash Plan – I increased to Rs. 10.3271, showing a return of 9.5% p.a.
• 📊 NBP Cash Plan – I benchmark return was 10.7% p.a.
• 📉 NBP Cash Plan – II decreased by 86% from Rs. 11,009 million to Rs. 1,546 million.
• ⭐ Unit price of NBP Cash Plan – II increased to Rs. 10.000, showing a return of 9.6% p.a.
• 📌 NBP Cash Plan – II benchmark return was 10.7% p.a.
• 📉 NBP Income Plan – I decreased by 86% from Rs. 1,948 million to Rs. 272 million.
• 💲 Unit price of NBP Income Plan – I increased to Rs. 10.1192, showing a return of 9.5% p.a.
• 🎯 NBP Income Plan – I benchmark return was 10.6% p.a.
• ✔️ Interim cash dividend of 2.40% approved for NBP Cash Plan – II
• ✔️ Interim cash dividend of 2.33% approved for NBP Income Plan – I
• 💼 Total income for NBP Cash Plan – I was Rs. 72.26 million.
• 🧾 Net income after expenses for NBP Cash Plan – I was Rs. 70.66 million.

🎯 Investment Thesis

Given the mixed performance and the fund’s underperformance against benchmarks, a HOLD recommendation is appropriate. The fund offers stable income, but investors should monitor its performance relative to its benchmarks and the evolving macroeconomic conditions.

⚡ Flash Summary

NBP Islamic Daily Dividend Fund (NIDDF) reported its financial results for the quarter ended September 30, 2025. The fund’s size decreased significantly by 66% from Rs. 15,227 million to Rs. 5,243 million. Despite the decrease in size, the unit price increased from Rs. 9.7525 (Ex-Div) on June 30, 2025, to Rs. 10.000 on September 30, 2025, reflecting a return of 10.1% p.a., outperforming the benchmark return of 9.7% p.a. The fund earned a total income of Rs. 200.19 million and net income of Rs. 181.01 million after expenses.

📌 Key Takeaways

• 💰 Fund size decreased significantly by 66%, from Rs. 15,227 million to Rs. 5,243 million.
• 📈 Unit price increased from Rs. 9.7525 (Ex-Div) to Rs. 10.000, yielding a 10.1% p.a. return.
• ✅ The fund outperformed its benchmark, which had a return of 9.7% p.a.
• 💸 Total income earned during the quarter was Rs. 200.19 million.
• 🧾 Net income after deducting expenses was Rs. 181.01 million.
• 📊 Headline inflation rose to 5.6% in September from 3.0% in August, with the average Q1 inflation easing to 4.2%.
• 🎯 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%.
• ⚖️ Foreign exchange reserves stood at USD 14.4 billion on September 26th.
• ✅ The fund is categorized as a Shariah Compliant Money Market Fund with a rating of ‘AA+ (f)’ by PACRA.
• 🏦 The fund aims to provide better returns than Islamic banks and windows of commercial banks.
• 📅 Fund cannot invest in securities exceeding six months maturity.
• 🕒 Weighted average time to maturity cannot exceed 90 days.
• 📊 Asset allocation includes Bai Muajjal (34.09%), Corporate Sukuk Certificate (17.59%), and Government securities (28.88%).
• ✔️ Interim cash dividend of 2.51% of the opening ex-NAV approved for the quarter ended September 30, 2025.

🎯 Investment Thesis

The fund’s performance is a mixed bag. The decrease in fund size is a concern, but the outperformance against the benchmark and positive returns are encouraging. Given the limited upside and the current market conditions, a HOLD recommendation is appropriate. Further analysis of the fund’s asset allocation and risk management practices is needed before considering a BUY recommendation.