⚡ Flash Summary

MCB Cash Management Optimizer (MCB CMOP) reported a decrease in net assets of 16.87% to Rs. 94,071 million as of September 30, 2025, compared to Rs. 113,163 million as of June 30, 2025. The fund generated an annualized return of 9.70%, underperforming its benchmark return of 10.66%. The Net Asset Value (NAV) per unit increased by Rs. 2.5028 to Rs. 104.8379. The fund held 32.8% of its assets in T-Bills at the period end, with a weighted average maturity (WAM) of 24 days.

📌 Key Takeaways

• 📉 Net Assets decreased by 16.87% to Rs. 94,071 million.
• 📊 NAV per unit increased by Rs. 2.5028 to Rs. 104.8379.
• 🎯 Annualized return of 9.70% was below the benchmark of 10.66%.
• 📅 Fund’s WAM (Weighted Average Maturity) stood at 24 days.
• 💰 32.8% of the fund’s assets were allocated to T-Bills.
• 🌍 Pakistan’s GDP growth was reported at 3.0% for FY25.
• inflation averaged 4.2% during 1QFY26, down from 9.2% in the prior year.
• 💸 The country’s current account deficit was USD 624 million in the first two months of FY26.
• 💹 Trade deficit increased by 7.4% YoY, with exports up 10.2% and imports up 8.8%.
• 🏦 SBP’s foreign exchange reserves remained stable at USD 14.4 billion.
• 💲 USD/PKR exchange rate appreciated by 0.9% to 281.3 during the fiscal year.
• FBR tax collection increased by 12.8% to PKR 2,885 billion, missing the target by PKR 198 billion.
• 🔮 GDP growth is projected to be 3.5% in FY26.
• 📉 Fiscal deficit is expected to be 4.0% in FY26, the lowest since FY2006.
• ⬇️ SBP has decreased interest rates by 1,100 bps since June-24, reaching 11.0%.

🎯 Investment Thesis

Given the recent underperformance and decrease in net assets, a HOLD recommendation is appropriate for existing investors. The fund’s conservative investment approach and stable macroeconomic environment provide some reassurance. However, potential investors should closely monitor the fund’s performance relative to its benchmark and peer funds before making a decision. The price target is the current NAV plus expected growth, considering potential market volatility. It depends on overall economy