MCBIM-FUNDS

⚡ Flash Summary

Alhamra Islamic Income Fund reported its financial results for the quarter ended September 30, 2025. The fund’s total income decreased compared to the same period last year, while total expenses increased. Net income for the period decreased, impacting the accounting income available for distribution. The Net Asset Value (NAV) per unit increased slightly, reflecting changes in the fund’s asset composition.

📌 Key Takeaways

• 📉 Total income decreased to PKR 1,241.618 million from PKR 1,320.811 million year-over-year.
• ⬆️ Income from government securities increased slightly to PKR 591.818 million from PKR 549.857 million.
• 📉 Capital gain on sale of investments decreased significantly to PKR 22.348 million from PKR 4.025 million.
• ⬆️ Profit on bank deposits increased to PKR 478.115 million from PKR 449.385 million.
• ⬆️ Total expenses increased to PKR 155.992 million from PKR 93.058 million year-over-year.
• 📉 Remuneration of the Management Company increased significantly to PKR 117.694 million from PKR 67.587 million.
• 📉 Net income for the period decreased to PKR 1,085.626 million from PKR 1,227.752 million.
• ⬇️ Income already paid on units redeemed increased to PKR (192.426) million from PKR (91.956) million.
• 📉 Accounting income available for distribution decreased to PKR 893.200 million from PKR 1,135.797 million.
• ⬇️ Relating to capital gains decreased to PKR 64.290 million from PKR 257.091 million.
• ⬆️ Net assets value per unit increased to PKR 106.8513 from PKR 104.2903.
• ⬇️ Net cash used in operating activities decreased to PKR (7,388.102) million from PKR (11,213.440) million.
• ⬆️ Net cash generated from financing activities decreased to PKR 3,875.066 million from PKR 22,398.153 million.
• ⬇️ Number of units in issue decreased to 399,375,137 from 410,171,831.
• 🏦 Balance with banks decreased to PKR 15,112.018 million from PKR 18,625.054 million.

🎯 Investment Thesis

Given the decrease in total income and the increase in expenses, alongside a modest NAV increase, a HOLD recommendation is appropriate for Alhamra Islamic Income Fund. The fund’s reduced profitability and increased expenses raise concerns about future performance. A price target cannot be accurately determined without a detailed discounted cash flow analysis and peer comparison, but we will revisit this fund with stronger data. Time horizon: Medium Term.

⚡ 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.

⚡ Flash Summary

Alhamra Daily Dividend Fund’s financial results for the quarter ended September 30, 2025, reveal a significant decrease in net income compared to the same period last year. The fund’s net income dropped from PKR 149.063 million to PKR 56.440 million. This decline is primarily attributed to a decrease in total income, driven by lower mark-up on investments and balances with banks. Despite a decrease in total liabilities, the overall net assets have decreased, resulting in the fund maintaining a net asset value per unit of PKR 100.0000.

📌 Key Takeaways

• 📉 Net income decreased significantly to PKR 56.440 million in Q3 2025 from PKR 149.063 million in Q3 2024.
• 💸 Total income declined from PKR 162.046 million to PKR 64.747 million, a 60% decrease.
• 🏦 Mark-up on balances with banks decreased from PKR 60.910 million to PKR 35.920 million.
• 💰 Income from investments decreased from PKR 101.136 million to PKR 28.827 million.
• 💼 Total expenses decreased slightly from PKR 12.983 million to PKR 8.307 million.
• 🏢 Remuneration of Management Company decreased from PKR 11.199 million to PKR 7.223 million.
• ⚖️ Total assets decreased significantly from PKR 3.991 billion to PKR 2.189 billion.
• 💵 Balances with banks decreased from PKR 2.483 billion to PKR 1.494 billion.
• 📊 Investments decreased from PKR 1.170 billion to PKR 618 million.
• 🧾 Total liabilities decreased substantially from PKR 654.126 million to PKR 4.708 million.
• ✅ Net assets decreased from PKR 3.337 billion to PKR 2.184 billion.
• 🌱 Number of units in issue decreased from 33,374,959 to 21,843,261.
• ✔️ Net asset value per unit remained constant at PKR 100.0000.

🎯 Investment Thesis

Given the significant decline in net income and total assets, a HOLD recommendation is warranted. While the NAV per unit has remained stable, the fund’s ability to generate returns has diminished. Investors should monitor the fund’s performance closely and consider alternative investment options if the downward trend continues. A more favorable view would require evidence of improved income generation and asset growth. The price target would be based on an improvement in fund performance.

⚡ Flash Summary

Alhamra Daily Dividend Fund’s financial results for the quarter ended September 30, 2025, reveal a significant decrease in net income compared to the same period last year. The fund’s net income dropped from PKR 149.063 million to PKR 56.440 million. This decline is primarily attributed to a decrease in total income, driven by lower mark-up on investments and balances with banks. Despite a decrease in total liabilities, the overall net assets have decreased, resulting in the fund maintaining a net asset value per unit of PKR 100.0000.

📌 Key Takeaways

• 📉 Net income decreased significantly to PKR 56.440 million in Q3 2025 from PKR 149.063 million in Q3 2024.
• 💸 Total income declined from PKR 162.046 million to PKR 64.747 million, a 60% decrease.
• 🏦 Mark-up on balances with banks decreased from PKR 60.910 million to PKR 35.920 million.
• 💰 Income from investments decreased from PKR 101.136 million to PKR 28.827 million.
• 💼 Total expenses decreased slightly from PKR 12.983 million to PKR 8.307 million.
• 🏢 Remuneration of Management Company decreased from PKR 11.199 million to PKR 7.223 million.
• ⚖️ Total assets decreased significantly from PKR 3.991 billion to PKR 2.189 billion.
• 💵 Balances with banks decreased from PKR 2.483 billion to PKR 1.494 billion.
• 📊 Investments decreased from PKR 1.170 billion to PKR 618 million.
• 🧾 Total liabilities decreased substantially from PKR 654.126 million to PKR 4.708 million.
• ✅ Net assets decreased from PKR 3.337 billion to PKR 2.184 billion.
• 🌱 Number of units in issue decreased from 33,374,959 to 21,843,261.
• ✔️ Net asset value per unit remained constant at PKR 100.0000.

🎯 Investment Thesis

Given the significant decline in net income and total assets, a HOLD recommendation is warranted. While the NAV per unit has remained stable, the fund’s ability to generate returns has diminished. Investors should monitor the fund’s performance closely and consider alternative investment options if the downward trend continues. A more favorable view would require evidence of improved income generation and asset growth. The price target would be based on an improvement in fund performance.