MCBIM-FUNDS

⚡ Flash Summary

Alhamra Cash Management Optimizer’s financial results for the quarter ended September 30, 2025, show a decline in profitability compared to the same period last year. Net income after taxation decreased from PKR 1,646.195 million to PKR 892.107 million. The decrease is primarily attributable to lower profit on investments and deposits with banks. Despite the drop in net income, the net assets value per unit increased slightly from PKR 100.3604 to PKR 102.8438.

📌 Key Takeaways

• 💰 Net income after taxation decreased by 45.8% from PKR 1,646.195 million in 2024 to PKR 892.107 million in 2025.
• 📉 Total income declined by 44.4% from PKR 1,744.028 million to PKR 969.992 million.
• 📊 Profit on investments decreased by 30.4% from PKR 998.005 million to PKR 695.056 million.
• 🏦 Profit on deposits with banks decreased significantly by 60.3% from PKR 666.041 million to PKR 264.582 million.
• 📈 Net Assets Value (NAV) per unit increased slightly by 2.5% from PKR 100.3604 to PKR 102.8438.
• 💸 Total assets decreased by 20.1% from PKR 42,649.054 million to PKR 34,084.594 million.
• ⬇️ Investment decreased by 4.8% from PKR 24,596.628 million to PKR 23,419.910 million.
• ✅ Total liabilities decreased substantially by 80.5% from PKR 209.810 million to PKR 41.024 million.
• 💸 Unit Holders’ Fund decreased by 20% from PKR 42,439.244 million to PKR 34,043.570 million.
• 🔻 Number of units in issue decreased by 21.7% from 422,868,512 to 331,022,208.
• 📉 Net cash generated from operating activities decreased significantly from a negative PKR 2,998.865 million to positive PKR 5,313.953 million.
• 📉 Net cash used in financing activities turned negative from a positive PKR 3,646.661 million to a negative PKR 9,287.781 million.

🎯 Investment Thesis

HOLD. While the fund has shown stability in its NAV per unit, the significant drop in income and overall contraction in size warrant a cautious approach. The fund’s performance needs to be closely monitored to determine if it can regain profitability and attract new investors. Given the increased economic uncertainty, a hold rating is appropriate.

⚡ Flash Summary

MCB DCF Income Fund’s financial results for the quarter ended September 30, 2025, reveal a decrease in net income compared to the same period last year. Total income decreased significantly, driven by lower income from government securities and reduced gains on investment sales. Expenses increased slightly, impacting overall profitability. The fund’s net asset value (NAV) per unit increased marginally, while the number of units in issue decreased.

📌 Key Takeaways

• 📉 Total income decreased to PKR 575.64 million in Q3 2025 from PKR 1,174.54 million in Q3 2024.
• 🔻 Income from Government securities dropped from PKR 692.71 million to PKR 434.45 million year-over-year.
• 📉 Net gain on sale of investments significantly declined to PKR 10.72 million versus PKR 288.31 million.
• ⬆️ Mark-up on bank deposits and term deposit receipt increased from PKR 65.96 million to PKR 86.45 million.
• ➖ Unrealised (diminution)/appreciation on re-measurement of investments resulted in a loss of PKR 0.32 million compared to a gain of PKR 58.27 million.
• 📈 Total operating expenses rose slightly to PKR 97.75 million from PKR 92.10 million.
• 📉 Net income for the period decreased to PKR 477.89 million versus PKR 1,082.43 million in the prior year.
• 🔻 Net income after taxation decreased to PKR 477.89 million from PKR 1,082.43 million.
• ⬇️ Income already paid on units redeemed decreased from PKR 79.91 million to PKR 35.87 million.
• ⚖️ Accounting income available for distribution decreased to PKR 442.02 million from PKR 1,002.53 million.
• ⬆️ Net Assets Value per Unit (NAVPU) increased slightly to PKR 112.16 compared to PKR 109.53 as of June 30, 2025.
• ⬇️ Number of units in issue decreased from 189.59 million to 177.54 million.
• 💸 Net cash generated from operating activities totaled PKR 4,747.95 million compared to PKR 3,762.75 million.
• 💸 Net cash (used in)/generated from financing activities amounted to (PKR 1,331.81) million versus PKR 261.91 million.

🎯 Investment Thesis

HOLD. The fund’s decreased income and overall profitability raise concerns about its future performance. Although NAVPU increased slightly, the negative trends in income generation and expense management warrant caution. A more in-depth analysis, including a sector comparison and detailed portfolio breakdown, is needed before making a strong buy or sell recommendation. Price target to remain the same, as of last analysis.

⚡ Flash Summary

MCB Pakistan Sovereign Fund’s financial results for the quarter ended September 30, 2025, reveal a decrease in net income compared to the same period last year. The fund’s net income after taxation stood at PKR 841.687 million, a significant drop from PKR 1,602.595 million in 2024. Total assets increased substantially from PKR 29,260.849 million to PKR 42,595.844 million. The Net Asset Value (NAV) per unit experienced a slight increase, moving from PKR 55.03 to PKR 56.34.

📌 Key Takeaways

• 📉 Net income for the period decreased to PKR 841.687 million, a substantial decline from PKR 1,602.595 million in the same quarter last year.
• ⬆️ Total assets increased significantly to PKR 42,595.844 million, compared to PKR 29,260.849 million as of June 30, 2025.
• 📊 Investments increased to PKR 34,307.240 million from PKR 24,037.384 million.
• 💰 Profit on bank deposits increased to PKR 78.171 million from PKR 67.290 million.
• 📉 Unrealized appreciation diminution in fair value of investments led to a loss of PKR 16.039 million, compared to a gain of PKR 657.943 million in the previous year.
• ⬆️ Total expenses increased to PKR 140.922 million from PKR 90.283 million.
• 💼 Remuneration of the Management Company increased to PKR 109.318 million from PKR 68.794 million.
• 💸 Net cash used in operating activities was PKR (5,090.307) million compared to PKR (19,832.299) million.
• 🏦 Cash and cash equivalents at the end of the period increased to PKR 9,254.537 million from PKR 5,668.130 million.
• 📈 NAV per unit increased slightly to PKR 56.34 from PKR 55.03.
• 💸 Income already paid on units redeemed was PKR (73.525) million compared to PKR (49.058) million.
• issuance of 307,691,416 units during the quarter.

🎯 Investment Thesis

Given the decreased net income and increased expenses, a HOLD recommendation is appropriate for MCB Pakistan Sovereign Fund. While the fund has shown growth in total assets and a slight increase in NAV, the declining profitability raises concerns. Further analysis and monitoring are necessary to assess the long-term impact of these trends. A BUY recommendation could be considered if profitability improves and expenses are managed more effectively.

⚡ Flash Summary

The Pakistan Income Fund’s financial results for the quarter ended September 30, 2025, show a decrease in net income after taxation to PKR 60.323 million compared to PKR 134.849 million in the same period last year. Total assets increased to PKR 2,411.736 million from PKR 1,442.527 million, driven by higher investments. The Net Assets Value (NAV) per unit increased slightly from PKR 55.0236 to PKR 56.5412. Cash flow from operations was negative due to increased investment, while financing activities generated positive cash flow from unit issuances.

📌 Key Takeaways

• 📉 Net income after taxation decreased significantly to PKR 60.323 million from PKR 134.849 million year-over-year.
• 📈 Total assets increased substantially to PKR 2,411.736 million, up from PKR 1,442.527 million.
• 📊 Investments grew to PKR 1,589.826 million from PKR 918.303 million, indicating portfolio expansion.
• 💸 Operating cash flow was negative at PKR (774.240) million due to increased investment activities.
• 🏦 Cash and cash equivalents increased to PKR 748.154 million from PKR 69.196 million.
• ⬆️ NAV per unit saw a slight increase to PKR 56.5412 from PKR 55.0236.
• 💰 Income from markup/return on investments decreased to PKR 45.672 million from PKR 84.890 million.
• 📉 Gain on sale of investments decreased to PKR 5.294 million from PKR 28.812 million.
• 🚫 Earnings Per Unit (EPU) was not disclosed due to impracticability of calculation.
• 💸 Positive cash flow from financing activities of PKR 973.282 million driven by unit issuances.
• ⬆️ Number of units in issue increased to 42,379,999 from 24,764,119.
• ⚠️ Unrealized depreciation on re-measurement of investments resulted in a loss of PKR (2.697) million.
• 📈 Expenses increased to PKR 12.505 million from PKR 10.568 million.

🎯 Investment Thesis

HOLD. The Pakistan Income Fund demonstrates mixed performance with decreased profitability offset by increased assets under management. While the increase in the number of units issued is positive, the fund needs to improve its income generation and cash flow management. Given the lack of EPS data, a HOLD recommendation is appropriate until a clearer picture of sustainable profitability emerges. Price target: PKR 58, Time Horizon: Medium Term. The price target is based on the potential for improved earnings, assuming the fund’s investment strategies begin to yield higher returns.

⚡ Flash Summary

Pakistan Cash Management Fund’s financial results for the quarter ended September 30, 2025, show a significant decrease in net income after taxation, dropping from PKR 629.172 million in 2024 to PKR 116.899 million in 2025. This decline is primarily attributed to a substantial reduction in income from government securities and profit on bank deposits. Despite the decrease in profitability, the fund maintained a stable Net Asset Value (NAV) per unit at PKR 50.4678. The fund’s strategy focused on managing expenses and maintaining a consistent NAV in a challenging economic environment.

📌 Key Takeaways

• 📉 Net income after taxation decreased significantly to PKR 116.899 million in Q3 2025, compared to PKR 629.172 million in Q3 2024.
• 💰 Income from government securities dropped from PKR 505.806 million in Q3 2024 to PKR 58.933 million in Q3 2025.
• 🏦 Profit on bank deposits decreased from PKR 84.474 million in Q3 2024 to PKR 61.662 million in Q3 2025.
• 💸 Capital gain on sale of investments decreased from PKR 20.799 million to PKR 7.673 million.
• 📊 Total income decreased significantly from PKR 676.817 million to PKR 132.327 million.
• ✅ Total expenses decreased from PKR 47.645 million to PKR 15.428 million.
• 🏢 Remuneration of MCB Investment Management Limited decreased from PKR 36.171 million to PKR 11.375 million.
• 🏦 Net cash generated from operating activities increased from PKR 786.458 million to PKR 2,060.009 million.
• 💸 Net cash used in financing activities shifted from an inflow of PKR 694.769 million to an outflow of PKR (15,831.247) million.
• ⚖️ Total assets increased from PKR 6,334.172 million to PKR 7,132.310 million.
• 🏦 Balances with banks increased from PKR 3,210.919 million to PKR 5,965.696 million.
• Investment in securities decreased from PKR 3,026.712 million to PKR 1,123.600 million.
• ⬆️ The number of units in issue increased from 124,806,025 to 140,888,902 units.
• ✔️ NAV per unit remained stable at PKR 50.4678.

🎯 Investment Thesis

HOLD. Given the significant decrease in profitability and stable NAV, a HOLD recommendation is appropriate. While the fund has managed to maintain its value, the reduced income streams pose a concern for future returns. A review of the fund’s investment strategy and market conditions is necessary before considering a BUY or SELL decision. Price target is maintained at PKR 50.4678 per unit.