Karachi: HBL Asset Management Limited has released its annual report for the fiscal year ending June 30, 2026, revealing a varied performance across its suite of funds amidst Pakistan's strengthening economic environment. The report, dated October 1, 2026, outlines the financial results for several funds under its management, including the HBL Income Fund, HBL Government Securities Fund, and HBL Money Market Fund, among others.
The period under review saw Pakistan achieve a real GDP growth rate of 3.7%, the highest in four years, expanding the economy to USD 452.1 billion. Despite early-year challenges from geopolitical tensions and elevated oil prices, macroeconomic stability was reinforced by eased geopolitical risks and declining crude oil prices. However, the current account swung to a deficit of USD 139 million from a surplus of USD 1,838 million the previous year, driven by a notable increase in imports.
According to information available from the Pakistan Stock Exchange (PSX), the equity market experienced a robust upward trajectory, with the KSE-100 Index closing at 180,301.70 points, marking a significant gain of 43.5%. This performance was fueled by improved liquidity and a stable external account, though foreign investors were net sellers, offloading USD 849 million.
HBL Income Fund reported a total income of Rs. 629.78 million, with a net income of Rs. 542.25 million, and a fund size of Rs. 8.21 billion as of June 30, 2026. The fund delivered an annualized return of 9.57%, underperforming its benchmark return of 10.61%. The HBL Government Securities Fund achieved a net income of Rs. 509.29 million, with a fund size of Rs. 3.74 billion, yielding an annualized return of 10.46%, slightly below its benchmark of 10.82%.
The HBL Money Market Fund saw its fund size grow to Rs. 46.78 billion, producing a total income of Rs. 3.84 billion and a net income of Rs. 3.27 billion. Its annualized return was 9.64%, falling short of the 10.73% benchmark. Conversely, the HBL Cash Fund reported a decrease in fund size to Rs. 77.19 billion, with a total income of Rs. 9.21 billion and net income of Rs. 8.31 billion, yielding a return of 10.20%.
Notably, the HBL Stock Fund and HBL Equity Fund posted returns of 33.67% and 25.19%, respectively, against the KSE 30 and KSE 100 indices' returns of 49.38%. The funds reported net incomes of Rs. 366.76 million and Rs. 290.51 million, with fund sizes of Rs. 2.75 billion and Rs. 1.36 billion, respectively.
Across the funds, VIS Credit Rating Company Limited reaffirmed varying stability ratings, with the HBL Income Fund receiving an A+(f) rating, while the HBL Government Securities Fund and HBL Money Market Fund maintained ratings of AA-(F) and AA+(f), respectively.
The broader economic context was marked by an average inflation rise to 7.1% for FY2026, with headline inflation at 11.1% in June 2026. The equity market's positive outlook is expected to continue, supported by stable external positions and macroeconomic consolidation. However, market directions will remain sensitive to geopolitical tensions, particularly any developments impacting the Strait of Hormuz.
Overall, the report reflects a year of economic resilience and varied fund performance, as HBL Asset Management navigates the complex landscape of local and global financial markets.