Karachi: The Board of Directors of NBP Fund Management Limited has released the unaudited Condensed Interim financial statements for the NBP Financial Sector Income Plus Fund (NFSIPF) for the quarter ending September 30, 2026. The report, dated November 3, 2026, provides insights into the fund's performance amidst upward-trending government securities yields.

During the first quarter of the fiscal year 2027, the yields on government securities rose, particularly towards the end of the quarter. This was driven by ongoing inflationary pressures and increased external uncertainties. The State Bank of Pakistan conducted six T-Bill auctions from July to September 2026, with cut-off yields for tenors ranging from one to twelve months between 11.25% and 12.35%. While yields were relatively stable in July, they began to increase through August and September, culminating in 6-month and 12-month cut-off yields of 12.45% and 12.49%, respectively, by the end of the quarter. Fixed-rate PIBs saw a similar trend with increased cut-off yields across various tenors, reaching 12.40% for the 2-year, 12.49% for both the 3-year and 5-year, and 12.50% for the 10-year tenor in September.

The NFSIPF invests in government securities, debt securities, and placements with banks and development finance institutions with entity ratings of "A" and above. The fund's strategy also includes investments in MTS and spread transactions to minimize credit risk and enhance liquidity. The fund has been given an 'A+ (f)' fund stability rating by PACRA.

According to information available from the Pakistan Stock Exchange (PSX), the size of the NBP Financial Sector Income Plus Fund saw a very large move, increasing by 58% from Rs. 45,715 million to Rs. 72,215 million during the quarter. The fund's unit price rose from Rs. 10.0249 on June 30, 2026, to Rs. 10.3125 on September 30, 2026, reflecting a return of 11.38% per annum, compared to its benchmark return of 11.16% per annum. The reported performance is net of management fees and other expenses.

The fund achieved a total income of Rs. 2,078.33 million during the period. After accounting for total expenses of Rs. 136.16 million, the net income stood at Rs. 1,942.17 million.