Karachi: The Board of Directors of HBL Asset Management Limited has released the financial results for its range of funds for the quarter ending September 30, 2026, revealing varied performances amid geopolitical tensions and elevated inflation rates. The report was dated November 2, 2026, and reflects the firm's efforts to navigate a challenging economic environment, including volatile oil prices and cautious investor sentiments.
The economic landscape during the first quarter of FY27 was marked by significant external pressures. Average headline inflation surged to 10.2%, a substantial increase from 4.3% in the same period last year, driven by rising global oil prices and domestic fuel costs. Concurrently, the current account deficit showed improvement, narrowing to USD 543 million in July-August FY27, a 36% decline from the previous year.
According to information available from the Pakistan Stock Exchange (PSX), the equity market experienced a downturn, with the KSE-100 Index closing the quarter at 169,969 points, marking a very large or significant move of a 5.7% decrease from June 2026. Average daily trading volumes fell by 16.9%, with foreign investors being net sellers.
HBL Asset Management's fund performances presented a mixed picture. The HBL Income Fund reported a moderate move with an annualized return of 9.37%, while the HBL Government Securities Fund posted an 8.09% return. Both underperformed against their respective benchmarks. The HBL Money Market Fund and HBL Cash Fund recorded annualized returns of 10.10% and 10.35%, respectively, but also lagged behind benchmark returns of 11.28%.
In contrast, the HBL Stock Fund and HBL Equity Fund outperformed their benchmarks, registering returns of 1.70% and 4.13%, respectively, against negative indices. The HBL Energy Fund achieved an 11.76% return, demonstrating resilience in an otherwise bearish market. The HBL Multi Asset Fund and HBL Growth Fund's Class 'B' also surpassed benchmarks with returns of 5.64% and 2.81%, respectively.
The HBL Mehfooz Munafa Fund's various plans showed varied results, with Plan-XIV yielding a 12.22% return, surpassing its benchmark of 12.63%, while Plan-XXII achieved a 3.92% return against an 11.76% benchmark return.
The Management Company maintained a stable outlook with a reaffirmed management quality rating of 'AM-I' from VIS Credit Rating Company Limited, despite the challenges posed by the macroeconomic environment. The financial sector income funds and the total treasury exchange-traded fund also demonstrated strong performance, contributing positively to the portfolio.
As the economic landscape continues to evolve, HBL Asset Management remains focused on navigating the complexities of the market, with an eye on stabilizing inflation and geopolitical developments that could affect future performance.