Karachi: The NBP Fund Management Limited has released the unaudited financial statements for NBP Balanced Fund (NBF) for the quarter ending September 30, 2025, showcasing a significant increase in the fund’s size and unit price, surpassing its benchmark and reflecting a robust performance in the stock market.
On November 3, 2025, the Board of Directors disclosed that the NBP Balanced Fund experienced a substantial increase in its size, rising from Rs. 1,470 million to Rs. 1,848 million, marking a 25.7% growth. The unit price of the fund also saw a substantial increase from Rs. 33.4532 on June 30, 2025, to Rs. 41.0291 on September 30, 2025, reflecting a 22.6% rise. In comparison, the benchmark only increased by 21.0%, resulting in the fund outperforming the benchmark by 1.6% during the quarter.
The Karachi Stock Exchange (KSE-100) Index closed at a record 165,494 points by the end of the period, delivering a 32% return in the first quarter of the fiscal year 2026. The stock market’s upward trend was driven by strong performances in sectors such as Commercial Banks, Cement, Oil & Gas Exploration, Fertilizer, and Power Generation.
According to information available from the Pakistan Stock Exchange (PSX), the macroeconomic indicators presented a mixed picture. Inflation averaged 4.2% during the quarter, showing a decrease from 9.2% a year prior but an increase from 2.3% in the previous quarter. The State Bank of Pakistan’s policy rate was reduced from 22% to 11%, with limited further monetary easing expected.
Externally, the current account deficit widened to LISD 624 million over the first two months of FY26, compared to LISD 430 million last year, primarily due to increased imports. However, remittances grew by 8.4% year-on-year during the first quarter of FY26. Despite a LISD 500 million Eurobond repayment, foreign exchange reserves remained stable at LISD 14.4 billion as of September 26, 2025.
The quarter also saw the successful completion of the IMF’s reviews under the Extended Fund Facility and the Resilience & Sustainability Facility, with a Staff-Level Agreement reached in October. This agreement is poised to unlock around LISD 1.2 billion in financial assistance, subject to IMF Executive Board approval.
Domestically, the government revised the GDP growth for FY25 upward to 3.04%, with projections for FY26 between 3.0% and 3.5%, driven by the industrial and services sectors. The industrial sector noted an impressive 19.9% growth in 4QFY25, while the agricultural sector faced challenges due to recent flooding.
The NBP Balanced Fund reported a total income of Rs. 354.11 million for the quarter, with total expenses amounting to Rs. 15.19 million. This resulted in a net income of Rs. 338.92 million. The asset allocation of the fund as of September 30, 2025, showed significant investments in listed equity securities and sukuk bonds.
In terms of participant activity, Mutual Funds, Individuals, and Companies were the largest net buyers, with inflows of LISD 206 million, LISD 89 million, and LISD 28 million, respectively, while Banks/DFIs, Foreign Investors, and Other Organizations reduced their net holdings.
The NBP Fund Management Limited expressed gratitude towards its unit-holders, the Securities & Exchange Commission of Pakistan, and the State Bank of Pakistan for their continuous support and guidance, and acknowledged the dedication and commitment of its staff and trustee in achieving these results.