⚡ Flash Summary
MCB DCF Income Fund reported a decrease in net assets, standing at Rs. 19,912 million as of September 30, 2025, compared to Rs. 20,766 million as of June 30, 2025, representing a decrease of 4.11%. The NAV per unit increased to Rs. 112.1574 from Rs. 109.5304, reflecting a Rs. 2.627 increase per unit. The fund’s annualized return was 9.52%, underperforming against its benchmark return of 10.57%. The fund’s allocation remained largely in T-Bills, PIBs, and GOP Ijara Sukuk, with the fund invested 43.4% in PIBs, 4.5% in GOP Ijara Sukuk, and 7.7% in T-Bills.
📌 Key Takeaways
- 📉 Net Assets decreased by 4.11% from Rs. 20,766 million to Rs. 19,912 million.
- 📈 NAV per unit increased by Rs. 2.627, from Rs. 109.5304 to Rs. 112.1574.
- 🎯 Annualized return was 9.52%, falling short of the benchmark return of 10.57%.
- ⏳ WAM (Weighted Average Maturity) of the fund increased to 2.2 years.
- 🏦 43.4% of the fund was invested in PIBs (Pakistan Investment Bonds).
- 📜 4.5% of the fund was allocated to GOP Ijara Sukuk.
- 🧾 7.7% was held in T-Bills.
- 🏛️ The country’s current account deficit was USD 624 million for the first two months of fiscal year 2026.
- 💹 Trade Deficit increased by 7.4% YoY with exports rising by 10.2% and imports by 8.8%.
- 💸 Remittances inflows grew by 7.0% to USD 6.4 billion.
- Reserve remain stable around USD 14.4 billion
- 💲 USD/PKR appreciated by 0.9% to 281.3 during the fiscal year.
- Inflation represented by CPI averaged 4.2% during 1QFY26 compared to 9.2% last year.
- GDP grew at 3.0% in FY25.
- Tax collection increased by 12.8% missing the target by PKR 198 billion.
🎯 Investment Thesis
HOLD. While the NAV per unit increased, the fund’s underperformance against its benchmark and the decrease in net assets raise concerns. Investors should monitor the fund’s performance closely and reassess their position based on future results. Given these factors, a HOLD recommendation is appropriate at this time. Price Target: Maintain current NAV, Time Horizon: MEDIUM_TERM (6-12 months).
Disclaimer: AI-generated analysis. Not financial advice.