NBP Funds Report Mixed FY26 Performance
NBP Fund Management Limited’s FY26 results, approved on September 4 and filed with the Pakistan Stock Exchange on September 7, show a sharply divided performance across its portfolio.
While several equity and sector-focused funds benefited from the strong stock market rally, many money-market and government-securities schemes recorded substantial declines in income compared with the previous year.
The newly launched NBP Islamic Gold Fund also ended its initial operating period in the red, highlighting the different investment outcomes across asset classes during FY26.
Islamic Gold Fund Starts With Rs21.5m Loss
The NBP Islamic Gold Fund, which operated for a limited period from May 4 to June 30, reported a net loss of Rs21.55 million.
The loss was largely linked to a Rs23.92 million unrealised mark-to-market decline. Since the fund had only been operational for several weeks, its results represent an initial-period performance rather than a full-year comparison.
The early loss comes despite the broader investment case for gold, making the result a notable development for a newly launched product built around bullion exposure.
Income Funds See Sharp Decline
Several income-oriented schemes that benefited from elevated interest rates during FY25 saw their earnings weaken as yields declined.
The NBP Money Market Fund reported net income of Rs9.34 billion, down from Rs14.81 billion a year earlier. Similarly, the NBP Financial Sector Income Fund recorded Rs6.79 billion compared with Rs8.82 billion previously.
The NBP Government Securities Liquid Fund’s income fell to Rs780 million from Rs1.82 billion, while the NBP Islamic Government Securities Fund-I saw its net income plunge to Rs151 million from Rs774 million.
Other income-focused funds also recorded significant declines. NBP Islamic Savings Fund earned Rs990 million against Rs1.62 billion, while NBP Islamic Mahana Amdani Fund posted Rs1.09 billion compared with Rs2.01 billion a year earlier.
The NBP Government Securities Savings Fund reported Rs389 million, down sharply from Rs1.25 billion.
The overall trend points to weaker coupon and placement income as market yields eased, with the decline in earnings outpacing reductions in expenses.
Equity Funds Benefit From Market Rally
Equity-focused schemes delivered a much stronger performance during FY26.
The NBP Stock Fund emerged as the standout performer, reporting net income of Rs17.61 billion compared with Rs14.05 billion in the previous year.
Its performance was supported by Rs12.11 billion in unrealised gains and Rs4.65 billion in realised gains from sales, reflecting the strong performance of equity markets during the year.
The NBP Islamic Stock Fund also improved, with net income rising to Rs3.08 billion from Rs2.48 billion.
Meanwhile, NBP Islamic Energy Fund recorded Rs1.16 billion compared with Rs921 million, while NBP Financial Sector Fund jumped to Rs354 million from Rs110 million.
NBP Pakistan Growth ETF nearly doubled its net income to Rs101 million from Rs56 million.
Investment Gains Drove Equity Performance
The stronger results from equity schemes were primarily driven by market appreciation rather than significant reductions in operating costs.
In the case of the NBP Stock Fund, management fees continued to rise alongside the growth in assets, reaching Rs1.64 billion.
This indicates that the improvement in fund earnings was largely supported by gains on investments, particularly unrealised equity appreciation.
New Funds Show Limited-Period Results
Several NBP schemes were launched or operated for only part of the financial year, making their reported figures difficult to compare directly with established full-year funds.
The NBP Islamic Principal Protection Fund-I, launched through staggered plans, recorded combined net income of Rs106 million. One of its plans, NIPPP-III, reported a small operating loss of Rs0.50 million.
The NBP Financial Sector Income Plus Fund, which was open from April 20, generated Rs843 million in just over two months, with almost all of the income coming from bank profit.
The NBP Government Securities Fund-II’s NGSP-VIII plan reported Rs194 million for a partial-year period.
Several Mustahkam and cash plans also reported period-specific figures, meaning their results should not be treated as directly comparable with funds that operated for the entire financial year.
Filing Covers 31 Funds
The covering letter submitted to the PSX lists 31 funds.
The distribution column in the filing remains blank, with one line marked NIL. The printed accounts are expected to follow.
As a result, investors will need to wait for the complete financial statements and any related distribution announcements before drawing conclusions about payouts and unit-holder returns.
What FY26 Results Reveal
The results reflect a major shift in the investment environment between FY25 and FY26.
Higher policy rates had previously supported money-market and government-securities funds by generating strong returns from cash and fixed-income placements. As yields eased, those income streams came under pressure.
At the same time, the stronger equity market provided a significant boost to stock and sector-focused funds.
This divergence means headline fund income alone does not provide a complete picture of investor performance. Unit-holder returns, distributions and changes in net asset values will remain important measures when assessing the actual benefit to investors.
Gold Fund Loss Highlights Early Market Risk
The NBP Islamic Gold Fund’s Rs21.55 million loss is relatively modest in absolute rupee terms, but its timing makes it noteworthy.
Because the fund operated for only a short period, the mark-to-market decline reflects the market conditions during its launch window rather than a full-year investment cycle.
The result also underlines the fact that asset-backed investment products can experience short-term volatility even when their underlying long-term investment narrative remains attractive.
Overall, NBP Fund Management’s FY26 results present an uneven picture: equity exposure benefited from market appreciation, while cash-heavy and fixed-income schemes faced pressure from lower yields.