⚡ Flash Summary

Faysal Funds’ Directors Report for the quarter ended September 30, 2025, reveals a resilient Pakistani economy despite flood impacts. The KSE-100 Index gained significantly, reflecting strong investor sentiment. The report details the performance of various Faysal Funds, with a mix of outperformance and underperformance against their benchmarks. Key macroeconomic indicators show some improvement, though challenges persist, particularly related to inflation and external debt.

📌 Key Takeaways

• 🇵🇰 Pakistan’s economy showed resilience despite flood impact, with GDP growth target revised to 3.5% from 4.2%.
• 📈 Large-Scale Manufacturing (LSM) index grew by 8.93% YoY in July 2025.
• ⚠️ Current Account Deficit (CAD) recorded at approximately USD 624 million.
• 💰 Remittances grew by 7% YoY, reaching USD 6.35 billion.
• 📉 Headline inflation declined to 4.1% in July 2025 but edged up to 5.6% in September 2025.
• 🏦 PKR/USD parity remained stable at 282.71, with SBP Reserves at USD 14.4 million.
• 🎯 FBR set a tax collection target of PKR 14,131 billion for FY26, but fell short by PKR 198 billion in Q1.
• 🤝 IMF engagement remains constructive, focusing on fiscal performance and circular debt reduction.
• 🚀 KSE-100/KMI-30 Index gained ~32/33%, closing at 165,493/246,267 points.
• 💸 Mutual Funds and Individual investors were net buyers, while Foreign Corporates were net sellers.
• 📊 Average daily volumes/value traded increased ~47/44% QoQ for KSE-100.
• ✨ Sector-wise, Banks, Cements, Power & Automobile Assemblers outperformed.
• 💼 Faysal Halal Amdani Fund yielded 9.03% versus benchmark of 9.74%.
• 💸 Faysal Islamic Cash Fund yielded 8.97% versus benchmark of 9.74%.
• 📈 Faysal Islamic Stock Fund posted an absolute 1QFY26 return of 28.72% against its benchmark return of 33.20%.

🎯 Investment Thesis

HOLD, given that the equity market is expected to maintain upward momentum. However, due to the recent sharp rally, a selective approach favoring cyclical and high-dividend yielding stocks is recommended.

⚡ Flash Summary

The Faysal Halal Amdani Fund reported its unaudited financial statements for the quarter ended September 30, 2025. The fund’s Condensed Interim Statement of Assets and Liabilities shows total assets of 43,638,107,400 Rupees. The Condensed Interim Income Statement indicates a total income of 1,182,047,440 Rupees and a net income after taxation of 1,007,141,079 Rupees. The Net Asset Value per Unit stands at 104.3373 Rupees.

📌 Key Takeaways

• Total assets for Faysal Halal Amdani Fund reached 43,638,107,400 Rupees as of September 30, 2025.
• Balances with banks amounted to 5,907,399,022 Rupees, a decrease from 15,504,228,201 Rupees in June 2025.
• Investments totaled 36,729,944,741 Rupees compared to 26,879,960,737 Rupees in June 2025.
• Deposits, advances, prepayment, and other receivables were 895,673,520 Rupees.
• Total liabilities reached 184,079,975 Rupees.
• Payable to Faysal Asset Management Limited was 81,120,170 Rupees.
• Payable to Central Depository Company of Pakistan Limited – Trustee was 2,376,285 Rupees.
• Payable to the Securities and Exchange Commission of Pakistan amounted to 2,817,711 Rupees.
• Net income for the quarter ended September 30, 2025, was 1,007,141,079 Rupees, a significant decrease from 3,320,838,296 Rupees for the same quarter in 2024.
• Expenses decreased substantially, with remuneration of Faysal Asset Management Limited dropping to 137,138,456 Rupees from 276,840,994 Rupees in the previous year’s quarter.
• Basic earnings per unit were not disclosed.
• Net cash used in operating activities was (9,210,911,750) Rupees, compared to (889,637,109) Rupees in 2024.

🎯 Investment Thesis

Given the fund’s focus on providing competitive returns with capital preservation, the drop in net income raises concerns. The reduction in bank balances may or may not be an indicator to the Fund’s performance, so I recommend a HOLD position until further financial data, analysis, and the full financial report has been released.

⚡ Flash Summary

Faysal Funds has released the financial results for the quarter ended September 30, 2025, covering multiple Islamic funds. The provided documents include condensed interim statements of assets, liabilities, income, and cash flows for various funds, such as Faysal Halal Amdani Fund and Faysal Islamic Asset Allocation Fund. Each fund’s performance and financial position are detailed in their respective annexures. The reports indicate varying levels of profitability and asset management across the different Islamic investment strategies.

📌 Key Takeaways

• 💰 Faysal Halal Amdani Fund’s net assets stand at Rupees 43,454,027,425.
• 📈 Faysal Halal Amdani Fund’s NAV per unit is Rupees 104.3373.
• 🏦 Faysal Halal Amdani Fund generated total income of Rupees 1,182,047,440 for the quarter.
• 📉 Faysal Halal Amdani Fund experienced net cash outflow in operating activities of Rupees (9,210,911,750).
• 🏦 Faysal Halal Amdani Fund – II’s net assets are Rupees 32,985,495,012.
• 📈 Faysal Halal Amdani Fund – II’s NAV per unit is Rupees 102.0473.
• 🏦 Faysal Halal Amdani Fund – II generated total income of Rupees 338,086,110 for the quarter.
• 💸 Faysal Halal Amdani Fund – II generated net cash of Rupees 32,655,433,501 from financing activities.
• 📊 Faysal Islamic Asset Allocation Fund’s net assets are Rupees 631,022,088.
• 📈 Faysal Islamic Asset Allocation Fund’s NAV per unit is Rupees 92.4791.
• 🏦 Faysal Islamic Asset Allocation Fund generated total income of Rupees 20,199,240 for the quarter.
• 📉 Faysal Islamic Asset Allocation Fund used net cash of Rupees (66,305,827) in operating activities.
• 💰 Faysal Islamic Asset Allocation Fund-II’s net assets are Rupees 2,168,091,579.
• 💸 Faysal Islamic Asset Allocation Fund-II’s cash outflow was Rupees (133,459,983).

🎯 Investment Thesis

Given the mixed performance across the funds, a ‘HOLD’ recommendation seems prudent at this time. The funds show varying levels of profitability and asset management efficiency. Before considering a ‘BUY’ or ‘SELL’ recommendation, further analysis is needed, including a detailed assessment of portfolio composition, expense ratios, risk-adjusted returns, and comparison against benchmark Islamic indices. A price target cannot be determined without additional valuation analysis. Time horizon: Medium Term, pending further data.