Karachi: The Board of Directors of NBP Fund Management Limited has released the unaudited condensed interim financial statements for the NBP Financial Sector Income Fund (NFSIF) for the quarter ending September 30, 2026. The report, dated November 3, 2026, highlights significant growth and strategic allocations amid changing market conditions.
During the first quarter of the fiscal year 2027, yields on government securities trended upward, particularly towards the end of the quarter. This trend came amid persistent inflationary pressures and heightened external uncertainties. The State Bank of Pakistan conducted six T-Bill auctions from July to September 2026. The cut-off yields for these auctions, spanning 1-month to 12-month tenors, ranged from 11.25% to 12.35%. Yields remained relatively stable in July but increased through August and September, with 6-month and 12-month cut-offs reaching 12.45% and 12.49%, respectively, by the quarter's end. Fixed-rate PIBs also experienced upward adjustments, with cut-off yields reaching 12.40% for 2-year, 12.49% for 3-year and 5-year, and 12.50% for the 10-year tenor in September.
The NFSIF, which invests a minimum of 70% of its assets in financial sector debt securities, instruments, or deposits, reported a fund size increase of 9% from Rs. 48,083 million to Rs. 52,259 million during the quarter. This growth reflects the Fund's strategic focus on minimizing credit risk and enhancing liquidity through investments in high-rated (minimum AA-) entities and instruments. The Fund also allocates 25% of its assets to less than 90 days T-Bills or saving accounts with banks, further enhancing its liquidity profile. According to information available from the Pakistan Stock Exchange (PSX), the unit price of the Fund rose from Rs. 10.7179 on June 30, 2026, to Rs. 11.0119 on September 30, 2026, indicating a return of 10.88% per annum compared to its benchmark return of 11.16% per annum.
The NFSIF reported a total income of Rs. 1,516.66 million for the quarter. After accounting for total expenses of Rs. 152.40 million, the net income stood at Rs. 1,364.26 million. The Fund maintains an 'A+ (f)' fund stability rating, as assigned by PACRA, which underscores its commitment to stability and risk management.