⚡ Flash Summary

Pakistan Cash Management Fund (PCF) reported its quarterly performance for the period ended September 30, 2025. The fund generated an annualized return of 9.58%, falling short of its benchmark return of 10.66%. Net assets increased to Rs. 7,110 million from Rs. 6,299 million in the prior quarter, marking a 12.88% rise. The Net Asset Value (NAV) per unit remained unchanged at Rs. 50.4678. The fund’s strategy heavily favors cash positions at the end of the reporting period.

📌 Key Takeaways

• 📈 Fund’s net assets increased by 12.88% quarter-over-quarter, reaching Rs. 7,110 million.
• 📉 The annualized return of 9.58% underperformed its benchmark of 10.66%.
• 💰 NAV per unit remained constant at Rs. 50.4678.
• 🇵🇰 Country’s current account deficit widened to USD 624 million in the first two months of FY26.
• 💹 Trade deficit increased by 7.4% YoY, as exports grew by 10.2% and imports increased by 8.8%.
• 💸 Remittance inflows saw a 7.0% growth, amounting to USD 6.4 billion.
• 🏦 SBP’s foreign exchange reserves remained stable at approximately USD 14.4 billion.
• ⚖️ Local currency appreciated against the USD by 0.9%, reaching 281.3 PKR/USD.
• 📉 Headline inflation averaged 4.2% during the quarter, compared to 9.2% in the corresponding period last year.
• 🌱 Pakistan’s revised GDP growth was recorded at 3.0% in FY25.
• 🚜 Agricultural sector grew by 1.5%, while industrial and services sectors expanded by 5.3% and 3.0%, respectively.
• 🧾 FBR tax collection increased by 12.8% to PKR 2,885 billion but missed the target by PKR 198 billion.
• 📊 Mutual funds industry net assets increased by approximately 10.3% to PKR 4,065 billion in 1QFY26.
• 💸 Money market funds declined by 3.6% since June 2025 with conventional funds declining by 4.5% and Islamic funds by 2.7%.

🎯 Investment Thesis

HOLD. The fund’s underperformance against its benchmark raises concerns, but the increase in net assets indicates ongoing investor confidence. The high cash allocation provides stability but limits potential returns. A review of the fund’s investment strategy and expense management is warranted. A HOLD recommendation is appropriate until clearer signs of improved performance emerge.