Karachi: The Board of Directors of NBP Fund Management Limited recently released the quarterly report for the NBP Islamic Principal Protection Fund - I, detailing its performance for the period ending September 30, 2026. The report, dated November 3, 2026, highlights the challenges and achievements faced by the fund amid fluctuating market conditions.
During the first quarter of FY27, the KMI-30 Index saw a significant decline of 5.3%, closing at 243,609 points. The market was weighed down by escalating tensions between the United States and Iran and a significant rise in global oil prices, impacting inflation and the interest rate outlook. Notably, the index fell by 3.2% in September alone.
According to information available from the Pakistan Stock Exchange (PSX), the NBP Islamic Principal Protection Plan - I (NIPPP-I) recorded a moderate move with a unit price increase of 1.2%. However, this performance fell short of the benchmark increase of 1.5%, reflecting a 0.3% underperformance. Since its inception, the plan's NAV has increased by 5.9%, contrasted with the benchmark's 9.6% rise, indicating a cumulative underperformance of 3.7%. The plan's current size stands at Rs. 858 million, with a net income of Rs. 11.15 million after expenses.
The NBP Islamic Principal Protection Plan - II (NIPPP-II) outperformed its benchmark, showing a unit price increase of 1.8% against the benchmark's 1.5%. Since inception, however, the plan has underperformed by 1.9%, despite a 5.0% NAV increase. The plan's size is Rs. 904 million, and it recorded a net income of Rs. 15.84 million.
Similarly, the NBP Islamic Principal Protection Plan - III (NIPPP-III) experienced a moderate unit price increase of 1.6%, slightly underperforming its benchmark by 0.1%. The plan’s size is Rs. 1.70 billion, with a net income of Rs. 26.69 million.
The NBP Islamic Principal Protection Plan - IV (NIPPP-IV) reported a unit price increase of 1.3%, underperforming its benchmark by 0.2%. The plan's size is Rs. 445 million, with a net income of Rs. 5.81 million.
The NBP Islamic Principal Protection Plan - V (NIPPP-V) saw a unit price increase of 1.4%, also underperforming its benchmark by 0.2%. Its size is Rs. 583 million, with a net income of Rs. 8.12 million.
Finally, the NBP Islamic Principal Protection Plan - VI (NIPPP-VI) recorded a unit price increase of 0.8%, underperforming the benchmark by 0.5%. Its size is Rs. 349 million, with a net income of Rs. 2.48 million.
Sector-wise, the funds' allocations are diversified across Oil & Gas Exploration, Refinery, Commercial Banks, Fertilizer, Cement, and others, with a significant portion held in cash equivalents and receivables.
Overall, while the funds showed varying degrees of performance against their benchmarks, they continued to navigate through the pressures of rising global oil prices and geopolitical tensions. Moving forward, market direction is expected to remain influenced by developments in the Middle East and global oil prices, although strengthened external buffers and continued IMF engagement provide support for the macroeconomic outlook.