Karachi: The Board of Directors of HBL Asset Management Limited has released its annual report for the fiscal year ended June 30, 2026, highlighting robust financial performance across its various funds despite challenging economic conditions. The report was made public on October 1, 2026.
During FY2026, Pakistan's economy demonstrated resilience, achieving a real GDP growth of 3.7%, the highest in four years, and expanding the economy to USD 452.1 billion. This growth occurred amidst easing geopolitical tensions, which initially drove up global oil prices but later stabilized following a US-Iran ceasefire.
The country's current account posted a deficit of USD 139 million, a shift from a surplus of USD 1,838 million in FY2025, primarily due to an 8.5% increase in imports totaling USD 76.4 billion, while exports remained nearly flat at USD 40.9 billion. Remittances rose by 8.6% to USD 41.6 billion, providing crucial support for the economy.
Headline inflation marked an 11.1% year-on-year increase in June 2026, driven by significant rises in transport, housing, and utilities costs. Despite these pressures, average inflation for FY2026 was 7.1%, up from 4.5% the previous year. The Monetary Policy Committee maintained the policy rate at 11.5% in June 2026, reflecting a cautious stance amid economic recovery.
According to information available from the Pakistan Stock Exchange (PSX), the benchmark KM130 Index experienced a very large move with a 39.20% increase, closing at 257,327 points. The KSE-100 Index also reported strong performance, bolstered by improved investor sentiment and a stable external account. The average daily trading volume surged by 26% to 463 million shares, while the traded value increased by 34% to PKR 28.5 billion.
HBL Asset Management's funds displayed commendable returns. The HBL Islamic Money Market Fund reported a total income of Rs. 7.88 billion, with a net income of Rs. 7.15 billion, achieving an annualized return of 10.45%. The fund's size was Rs. 56.86 billion as of June 30, 2026.
The HBL Islamic Income Fund posted a total income of Rs. 1.88 billion and a net income of Rs. 1.71 billion, with an annualized return of 10.26%. The fund size was Rs. 8.30 billion by the end of the fiscal year.
The HBL Islamic Stock Fund and HBL Islamic Equity Fund reported returns of 27.45% and 32.53%, respectively, highlighting strong performance in the equity market despite foreign investors being net sellers.
Looking ahead, the equity market is expected to maintain a positive trajectory supported by stable macroeconomic conditions. However, potential geopolitical tensions remain a risk factor that could impact market sentiment and economic stability.
Overall, HBL Asset Management's performance, as reflected in its annual report, underscores the company's resilience and strategic acumen in navigating complex economic landscapes, providing robust returns to its investors while maintaining a stable outlook for future growth.