⚡ Flash Summary

Pakistan Income Enhancement Fund’s financial results for the quarter ended September 30, 2025, show a significant decrease in total income compared to the same period last year. The fund’s net assets increased substantially, driven by the issuance of new units. However, income from government securities, a primary source of revenue, decreased significantly. Management did not disclose earnings per unit (EPU), stating that calculating the weighted average number of units is impracticable.

📌 Key Takeaways

• 📉 Total income decreased significantly from PKR 1,064.665 million to PKR 76.404 million year-over-year.
• ⚠️ Income from government securities dropped drastically from PKR 502.777 million to PKR 64.155 million.
• 💸 Profit on bank deposits decreased from PKR 42.744 million to PKR 11.599 million.
• 📈 Net assets increased from PKR 1,071.851 million to PKR 2,711.439 million, mainly due to unit issuance.
• 🆕 Number of units in issue increased significantly from 19,483,501 to 48,119,347.
• NAV per unit increased slightly from PKR 55.0133 to PKR 56.3482.
• ❌ Earnings per unit (EPU) was not disclosed.
• ⚠️ Expenses decreased from PKR 63.982 million to PKR 13.965 million.
• ⚠️ Remuneration of Management Company decreased substantially from PKR 48.045 million to PKR 10.231 million.
• 💸 Net cash used in operating activities was PKR (2,080.653) million compared to cash used of PKR (12,849.313) million in the same quarter last year.
• 💸 Net cash generated from financing activities was PKR 1,577.149 million compared to cash generated of PKR 13,515.302 million in the same quarter last year.

🎯 Investment Thesis

Given the significant decrease in income and the lack of EPU disclosure, a HOLD recommendation is appropriate. The fund’s reliance on unit issuance to increase assets raises concerns about long-term sustainability. While the NAV per unit has slightly increased, the overall performance needs further scrutiny. More transparency and improved income generation are needed before considering a more positive outlook. Price target cannot be determined without more data. Time horizon: Medium-term, pending improved performance and transparency.