⏸️ MCBIM-FUNDS: HOLD Signal (5/10) – MCB PAKISTAN SOVEREIGN FUND FINANCIAL RESULT FOR THE QUARTER ENDED SEPTEMBER 30, 2025

📌 Key Takeaways

• 📉 Net income for the period decreased to PKR 841.687 million, a substantial decline from PKR 1,602.595 million in the same quarter last year.
• ⬆️ Total assets increased significantly to PKR 42,595.844 million, compared to PKR 29,260.849 million as of June 30, 2025.
• 📊 Investments increased to PKR 34,307.240 million from PKR 24,037.384 million.
• 💰 Profit on bank deposits increased to PKR 78.171 million from PKR 67.290 million.
• 📉 Unrealized appreciation diminution in fair value of investments led to a loss of PKR 16.039 million, compared to a gain of PKR 657.943 million in the previous year.
• ⬆️ Total expenses increased to PKR 140.922 million from PKR 90.283 million.
• 💼 Remuneration of the Management Company increased to PKR 109.318 million from PKR 68.794 million.
• 💸 Net cash used in operating activities was PKR (5,090.307) million compared to PKR (19,832.299) million.
• 🏦 Cash and cash equivalents at the end of the period increased to PKR 9,254.537 million from PKR 5,668.130 million.
• 📈 NAV per unit increased slightly to PKR 56.34 from PKR 55.03.
• 💸 Income already paid on units redeemed was PKR (73.525) million compared to PKR (49.058) million.
• issuance of 307,691,416 units during the quarter.

🎯 Investment Thesis

Given the decreased net income and increased expenses, a HOLD recommendation is appropriate for MCB Pakistan Sovereign Fund. While the fund has shown growth in total assets and a slight increase in NAV, the declining profitability raises concerns. Further analysis and monitoring are necessary to assess the long-term impact of these trends. A BUY recommendation could be considered if profitability improves and expenses are managed more effectively.