Karachi: The Board of Directors of NBP Fund Management Limited has released the unaudited financial statements for the NBP Government Securities Liquid Fund (NGSLF) for the quarter ending September 30, 2025. The report highlights significant changes in the fund’s size and performance amid evolving economic conditions.
The NGSLF experienced a 38% decrease in its fund size, reducing from Rs. 12,169 million to Rs. 7,549 million over the quarter. The unit price of the fund rose from Rs. 10.3093 as of June 30, 2025, to Rs. 10.5585 by the end of September 2025, reflecting a 9.6% annualized return. This performance is set against a benchmark return of 10.7% for the same period, indicating a competitive positioning despite market challenges.
During the July to September 2025 period, the State Bank of Pakistan (SBP) maintained the policy rate at 11% to prioritize price stability amid rising inflation. Headline inflation increased to 5.6% in September from 3.0% in August, while the average inflation for the first quarter of the fiscal year 2026 eased to 4.2%, down from 9.2% in the previous year. These inflationary dynamics were influenced by recent floods that disrupted food supply chains.
The State Bank’s monetary policy, along with fiscal measures such as a Rs. 2.4 trillion profit transfer to the government and increased petroleum levies, facilitated improved fiscal performance with an expected primary surplus in the first quarter of FY26. This was complemented by stability in sovereign debt markets, with Rs. 3.55 trillion raised through Treasury Bill auctions.
According to information available from the Pakistan Stock Exchange (PSX), the NGSLF’s asset allocation strategy, primarily focused on Treasury Bills, has contributed to its AAA(f) stability rating by PACRA. This rating underscores the fund’s strong credit and liquidity profile, with low exposure to credit, liquidity, and interest rate risk due to its significant investment in government securities.
The fund’s financial performance for the quarter shows a total income of Rs. 336.76 million, with total expenses amounting to Rs. 44.03 million, resulting in a net income of Rs. 292.73 million. The net assets of the fund stood at Rs. 7,549.36 million as of September 30, 2025, reflecting a decrease from Rs. 12,169.42 million at the start of the period.
NBP Fund Management Limited extended its gratitude to unit-holders, the Securities & Exchange Commission of Pakistan, and the State Bank of Pakistan for their continued support and guidance. The management reaffirmed its commitment to providing optimal returns with minimal risk while maintaining the fund’s stability and resilience against economic shocks.