Karachi: The Board of Directors of NBP Fund Management Limited has released the unaudited condensed interim financial statements for NBP Income Fund of Fund for the quarter ending September 30, 2025. This report highlights both the financial performance of various fund plans under the NBP Income Fund of Fund and the broader economic context influencing these results.
For the July-September 2025 quarter, the State Bank of Pakistan held its policy rate steady at 11%, prioritizing inflation control amidst changing macroeconomic conditions. Inflation figures showed an increase to 5.6% in September from 3.0% in August; however, the average inflation for the first quarter lessened to 4.2%, compared to 9.2% the previous year. The SBP projects average inflation for fiscal year 2026 to remain within a 5%-7% target range, with a slight rise expected later due to base effects. Meanwhile, the real GDP growth for FY26 is projected between 3.0% and 3.5%, undershooting the government’s target due to agricultural losses from recent floods and inflationary pressures. Despite these challenges, the economy shows resilience, bolstered by policy reforms, fiscal discipline, and stability in the external sector.
The NBP Cash Plan – I of the NBP Income Fund of Fund saw a size increase of 3% from Rs. 2,902 million to Rs. 2,997 million, with a unit price rise from Rs. 10.0850 to Rs. 10.3271, marking a return of 9.5% per annum, underperforming its benchmark return of 10.7% per annum. The fund, classified as an Open Ended – Fund of Fund Scheme, focuses on providing a stable income stream while preserving capital through investments in AA and above rated banks and money market funds. The total income for this period was Rs. 72.26 million, and after expenses, the net income stood at Rs. 70.66 million.
Conversely, the NBP Cash Plan – II experienced a very large move with a substantial size decrease of 86% from Rs. 11,009 million to Rs. 1,546 million. Its unit price increased from Rs. 9.7628 to Rs. 10.000, delivering a return of 9.6% per annum against a benchmark of 10.7% per annum. The fund generated a total income of Rs. 90.20 million, with net income after expenses at Rs. 87.85 million.
According to information available from the Pakistan Stock Exchange (PSX), the NBP Income Plan – I also faced a significant contraction, with its size dropping 86% from Rs. 1,948 million to Rs. 272. The unit price rose from Rs. 9.8819 to Rs. 10.1192, achieving a return of 9.5% per annum, slightly below its benchmark of 10.6% per annum. During this period, the fund’s total income was Rs. 21.62 million, and net income, after expenses, amounted to Rs. 20.87 million.
The Board of Directors approved an interim cash dividend for the NBP Income Fund of Fund, with a distribution of 2.40% of the opening exNAV for the quarter ended September 2025. The fiscal performance of Pakistan showed improvement, with a primary surplus expected in the first quarter of FY26, supported by a Rs. 2.4 trillion profit transfer from the SBP and increased petroleum levies. The sovereign debt markets remained stable, raising Rs. 3.55 trillion through six T-Bill auctions against a target of Rs. 2.98 trillion, despite a maturity of Rs. 3.95 trillion.
In conclusion, while some funds under the NBP Income Fund of Fund saw growth, others encountered significant reductions, reflecting the broader economic challenges and adjustments in the market. The Board expressed gratitude to stakeholders, including unit-holders and regulatory bodies, for their continued trust and support.