UBL Fund Managers Limited has released its Quarterly Report for the period ended March 31, 2026, providing investors with an overview of Pakistan’s economic landscape, financial markets, and the performance of its conventional investment funds. The report outlines how the fund manager navigated changing market conditions while maintaining a diversified portfolio across money market, income, equity, and fixed-return funds.
According to the report, Pakistan’s economy continued to show signs of macroeconomic stability during the first nine months of FY2026. Inflation moderated further, foreign exchange reserves improved, and worker remittances remained strong, supporting external balances. The report also highlighted recent sovereign credit rating upgrades and progress under the IMF program, which strengthened investor confidence despite geopolitical uncertainties.
UBL Funds noted that the domestic debt market remained volatile throughout the period. While expectations of monetary easing initially supported bond markets, geopolitical developments later pushed yields higher. Government treasury bill auctions continued to attract strong investor participation, while demand for Pakistan Investment Bonds (PIBs) and Sukuk remained robust.
The report also reviewed developments in Pakistan’s equity market, where the KSE-100 Index reached record highs before regional tensions triggered a correction. Despite the pullback, mutual funds and retail investors remained net buyers, reflecting continued confidence in the local market over the long term.
Among the conventional funds, money market products continued to deliver stable returns while maintaining high liquidity. The UBL Liquidity Plus Fund reported a 3QFY26 annualized return of 10.11%, supported by significant allocations to Treasury Bills, floating-rate PIBs, and cash. Similarly, the UBL Liquidity Fund generated a 10.28% annualized return, with most of its assets invested in cash to preserve liquidity.
The UBL Money Market Fund posted an annualized return of 10.04%, maintaining a conservative portfolio focused on cash and Treasury Bills, while the UBL Cash Fund earned an annualized return of 9.81% through investments in short-term government securities and cash equivalents.
Within fixed-income strategies, the UBL Government Securities Fund delivered an annualized return of 12.22%, benefiting from its exposure to Pakistan Investment Bonds and Government Ijarah Sukuk. Meanwhile, the UBL Growth and Income Fund achieved an annualized return of 10.48%, balancing government securities, Treasury Bills, and cash holdings.
UBL’s equity-focused funds also demonstrated strong long-term positioning. The UBL Stock Advantage Fund reported a 33.5% return during the review period with approximately 95% of its assets invested in equities. The UBL Financial Sector Fund posted an even stronger 50.24% return, while the UBL Asset Allocation Fund generated 29.8% by maintaining diversified exposure across equities and fixed-income instruments.
The report further highlighted the performance of the UBL Pakistan Enterprise Exchange Traded Fund (UBLP-ETF), which recorded a 46.74% return while maintaining around 96% exposure to listed equities. Several special savings and fixed-return plans also continued to provide investors with competitive returns through diversified investments in Treasury Bills, PIBs, and cash.
Looking ahead, UBL Fund Managers believes that Pakistan’s improving macroeconomic indicators, easing inflation, and strengthening external position could support investment opportunities across both debt and equity markets. However, the report cautions that global geopolitical developments and interest rate expectations will remain important factors influencing market performance in the coming months.
