Karachi: The Board of Directors of NBP Fund Management Limited has released the unaudited Condensed Interim financial statements for the NBP Money Market Fund (NMMF) for the quarter ending September 30, 2026. The report, dated November 3, 2026, highlights the fund's performance amid fluctuating economic conditions.
During the first quarter of fiscal year 2027, yields on government securities experienced an upward trend, driven by persistent inflationary pressures and significant external uncertainties. Over the July-September period, the State Bank of Pakistan (SBP) conducted six Treasury Bill auctions with cut-off yields ranging between 11.25% and 12.35% for tenors from one to twelve months. The yields, which were relatively stable in July, increased through August and September, reaching 12.45% and 12.49% for six-month and twelve-month bills, respectively, by the end of the quarter.
The NBP Money Market Fund, which is a Money Market scheme with strict investment guidelines, saw its size decrease by 1%, from Rs. 87,460 million to Rs. 86,827 million. Despite this reduction, the unit price of the Fund increased from Rs. 10.0698 on June 30, 2026, to Rs. 10.3379 on September 30, 2026, reflecting a return of 10.56% per annum against a benchmark return of 11.28% per annum.
According to information available from the Pakistan Stock Exchange (PSX), Shariah-compliant government securities were actively issued, with short-term Sukuk yields rising from around 11.30%-11.84% in July to approximately 11.68%-12.49% in the final September auction.
The NBP Money Market Fund's stability rating, awarded by PACRA, stands at 'AA+ (f)', indicating a very strong capacity to maintain relative stability in returns with very low exposure to risks. The Fund is authorized to invest in T-Bills, Bank Deposits, and Money Market instruments, with a minimum rating requirement of 'AA' and no investment allowed in securities exceeding six months maturity. The weighted average time to maturity of the Fund is capped at 90 days.
For the quarter, the Fund reported a total income of Rs. 2,639.10 million. After accounting for total expenses of Rs. 228.42 million, the net income amounted to Rs. 2,410.68 million. The asset allocation of the Fund as of September 30, 2026, was as follows: Term Deposit Receipts (AAA) at 9.8%, Certificate of Islamic Investments (AA+) at 0.6%, Money Market Placements (LOP) (AA) at 4.6%, Pakistan Investment Bonds (AAA) at 11.5%, Treasury Bills (AAA) at 27.6%, and Cash Equivalents & Other Net Assets (AA+) at 45.9%.