Karachi: The Board of Directors of NBP Fund Management Limited has released the unaudited condensed interim financial statements for the NBP Islamic Gold Fund (NIGF) for the quarter ending September 30, 2026. The report, dated November 3, 2026, highlights a significant increase in the fund size from Rs. 476 million to Rs. 771 million, marking a 62% rise during the period.
The fund's performance was largely influenced by fluctuating gold prices throughout the first quarter of the fiscal year 2027. July saw stable prices, followed by a 10% rally in August, the strongest monthly gain since January. This was attributed to softer US economic data, which lowered expectations of further Federal Reserve rate hikes and increased investment demand. However, the rally was partially reversed by the end of August due to hawkish signals from the Federal Reserve. September witnessed a 6.6% decline in gold prices, exacerbated by a 25 basis point rate hike by the US Federal Reserve, a sharp increase in US Treasury yields, a stronger US dollar, and rising oil prices.
Despite these fluctuations, gold ended the quarter modestly higher than its end-June level. The outlook for gold remains positive, bolstered by ongoing geopolitical uncertainties, central-bank reserve diversification, and its role as a portfolio diversifier. Nonetheless, the trajectory of US interest rates, the US dollar, and real yields are expected to maintain price volatility in the near term.
The NBP Islamic Gold Fund experienced a decrease in unit price from Rs. 9.4137 on June 30, 2026, to Rs. 9.2403 on September 30, 2026, indicating a 1.8% decrease, classified as a big move. The fund's benchmark saw a 1.0% decline, leading to the fund underperforming its benchmark by 0.8% during the period. Since its inception, the fund's NAV has decreased by 7.4%, from Rs. 9.9833 on May 4, 2026, to Rs. 9.2403 on September 30, 2026, while its benchmark has decreased by 3.8%, resulting in a 3.6% underperformance to date.
According to information available from the Pakistan Stock Exchange (PSX), the NBP Islamic Gold Fund incurred a loss of Rs. 20.60 million during the quarter. After accounting for total expenses of Rs. 2.48 million, the total loss amounted to Rs. 23.08 million.
The fund's assets were allocated with 73.1% in gold and 26.9% in cash equivalents and others, including receivables. The NBP Islamic Gold Fund continues to navigate the challenges of a volatile market environment while seeking to provide value to its investors.