⏸️ OPENFUND: HOLD Signal (6/10) – OPEN FUND 786 Smart Fund Financial Results of the Quarter/Period Ended September 30, 2025.

📌 Key Takeaways

• 📉 Net income after taxation decreased to PKR 34.06 million from PKR 62.71 million YoY.
• ❌ No cash dividend was recommended for the period.
• 🚫 No bonus units were declared for the period.
• ❌ No right shares were offered for the period.
• 💰 Total assets decreased to PKR 1,423.38 million from PKR 1,527.73 million since June 30, 2025.
• ⬆️ Net assets value per unit increased to PKR 86.02 from PKR 84.06 since June 30, 2025.
• 🏦 Balances with banks decreased significantly to PKR 714.88 million from PKR 949.92 million since June 30, 2025.
• 📊 Investments increased to PKR 690.76 million from PKR 558.70 million since June 30, 2025.
• 💸 Income from investments and balances with banks decreased to PKR 40.47 million from PKR 64.34 million YoY.
• ⚠️ Impairment on investment reported at PKR 3.06 million for the quarter.
• 🏢 Remuneration to the management company increased to PKR 5.64 million from PKR 4.91 million YoY.
• 🧾 Total liabilities increased slightly to PKR 14.30 million from PKR 13.92 million since June 30, 2025.
• 🔄 Net cash used in operating activities was PKR (96.07) million compared to cash generated of PKR 600.19 million YoY.
• 📉 Net cash used in financing activities was PKR (138.96) million compared to (135.51) million YoY.
• ❌ No other entitlement or corporate action was declared.

🎯 Investment Thesis

HOLD. OPEN FUND 786 Smart Fund’s recent performance indicates challenges in maintaining profitability. The decrease in net income and shift to negative operating cash flow are concerning. While the net asset value per unit has slightly increased, the overall financial picture suggests caution. Given these factors, a hold recommendation is appropriate. Investors should monitor the fund’s performance and strategic adjustments closely. This recommendation will be re-evaluated following the next financial results release.