Karachi: The Board of Directors of NBP Fund Management Limited has released the unaudited Condensed Interim financial statements for the NBP Islamic Income Fund (NBP-IIF), revealing a decrease in the fund size by 6% for the quarter ending September 30, 2026. The fund size reduced from Rs. 6,015 million to Rs. 5,632 million over the quarter.
The unit price of the fund has shown an increase from Rs. 10.1599 on June 30, 2026, to Rs. 10.4043 by the end of September 2026, reflecting an annualized return of 9.54%, slightly outperforming its benchmark return of 9.46% for the same period. The returns are calculated net of management fees and other expenses. NBP-IIF is classified under the Shariah Compliant Income Fund category.
The fund has maintained a stability rating of 'A+ (f)' by PACRA, signifying a strong capacity for relative stability in returns and minimal risk exposure. The fund is focused on providing competitive returns through investments in Shariah compliant debt securities and money market instruments. Investments are permitted in A- or higher rated Islamic banks and Islamic branches of conventional banks, with restrictions against equities and a weighted average maturity not exceeding four years, excluding government securities.
During the first quarter of fiscal year 2027, yields on government securities inclined, particularly toward the quarter's end, due to ongoing inflationary pressures and external uncertainties. Shariah-compliant government securities, actively issued through the Pakistan Stock Exchange (PSX), saw short-term Sukuk yields increase from 11.30%-11.84% in July to approximately 11.95%-12.49% by the final auction in September. Longer-tenor fixed-rate and zero-coupon Sukuk were accepted at yields reaching 12.50%.
According to information available from the Pakistan Stock Exchange (PSX), the fund reported a total income of Rs. 170.41 million for the quarter. After accounting for total expenses of Rs. 27.84 million, the net income amounted to Rs. 142.57 million.
The asset allocation and weighted average credit ratings of NBP-IIF's sub-asset classes are as follows: Cash Equivalents & Other Net Assets (AA+) at 35.94%, Government Ijara Sukuks at 30.11%, Certificates of Musharaka at 15.98%, and Corporate Sukuks Certificates at 17.97%.