⚡ Flash Summary

MCB Pakistan Asset Allocation Fund’s financial results for the quarter ended September 30, 2025, reveal a significant surge in net income after taxation, jumping to PKR 277.124 million from PKR 20.472 million in the same period last year. This remarkable increase is primarily driven by substantial capital gains on the sale of investments and unrealized appreciation in their fair value. The fund’s total assets have more than doubled, reaching PKR 1,634.003 million, compared to PKR 795.157 million in June 2025. However, the fund management has deemed the calculation of earnings per unit (EPU) impracticable.

📌 Key Takeaways

• 🚀 Net income after taxation soared to PKR 277.124 million, a significant increase from PKR 20.472 million in Q3 2024.
• 📈 Total assets more than doubled to PKR 1,634.003 million compared to PKR 795.157 million as of June 30, 2025.
• 💰 Capital gains on the sale of investments reached PKR 26.554 million, compared to a loss of PKR 8.915 million in Q3 2024.
• ✨ Unrealized appreciation in the fair value of investments was a major contributor at PKR 250.243 million vs. PKR 10.290 million in Q3 2024.
• 🏦 Balance with banks increased substantially to PKR 282.435 million from PKR 124.675 million as of June 30, 2025.
• 📊 Investments grew significantly to PKR 1,342.876 million compared to PKR 653.603 million as of June 30, 2025.
• 💸 Total proceeds from the issuance of units amounted to PKR 927.314 million.
• 📉 Payments on redemption of units totaled PKR 349.583 million.
• 💼 Net asset value per unit increased to PKR 232.0017 from PKR 187.4224 as of June 30, 2025.
• 📝 Management Company remuneration increased to PKR 8.993 million from PKR 5.452 million.
• ✅ Total expenses increased to PKR 13.904 million from PKR 7.941 million in Q3 2024.
• 💸 Net cash used in operating activities amounted to PKR (399.806) million.
• Issuance of new units generated PKR 927.314 million in cash flow.
• Payouts for unit redemptions consumed PKR 349.583 million in cash flow.

🎯 Investment Thesis

Given the impressive growth in net income, total assets, and NAV per unit, a BUY recommendation is justified. The fund’s ability to generate substantial capital gains and attract new investors supports a positive outlook. Price Target: PKR 250 per unit. Time Horizon: Medium Term.