Positive

⚡ Flash Summary

The Pakistan Income Fund (PIF) quarterly report for the period ended September 30, 2025, shows a positive performance with an annualized return of 10.94%, exceeding the benchmark return of 10.57%. The fund’s net assets increased significantly by 75.79% to Rs. 2,396 million compared to June 30, 2025. However, the Net Asset Value (NAV) per unit decreased slightly to Rs. 56.5412. The fund’s investment portfolio is diversified across T-Bills, PIBs, and TFC/Sukuks. The issuance of fresh units has been temporarily suspended to ensure fair treatment of unit holders.

📌 Key Takeaways

• 📈 Fund generated an annualized return of 10.94%, surpassing its benchmark of 10.57%.
• 💰 Net Assets increased significantly by 75.79%, reaching Rs. 2,396 million as of September 30, 2025.
• 📉 Net Asset Value (NAV) per unit decreased slightly by Rs. 1.5176 to Rs. 56.5412.
• 📊 Portfolio allocation: 9.0% in T-Bills, 29.4% in PIBs, and 15.4% in TFC/Sukuks.
• 📅 Weighted average maturity of the fund stood at 1.7 years.
• 🚫 Issuance of fresh units temporarily suspended from September 25, 2025.
• 🤝 Management Company agreed to convert TFCs worth Rs. 49.94 million into 9.2 million ordinary shares of PACE at Rs. 9 per share.
• 🌱 GDP growth is expected to be 3.5% in FY26, with agriculture growing at 2.8%.
• 🏦 SBP reserves are projected to increase to USD 17.5 billion by year-end.
• 💲 A modest current account deficit of around USD 1.5 billion (0.3% of GDP) is anticipated for FY26.
• inflation is expected to remain in single digits, averaging 6.3% for the year.
• 📉 The fiscal deficit is expected to clock in at 4.0% in FY26, the lowest since FY2006.
• ⬇️ SBP has decreased interest rates by a cumulative 1,100 bps since June 2024.
• 💼 Net Assets of the open-end mutual funds industry increased by 10.3% to PKR 4,065 billion.
• 🏦 Money Market funds lead with a 44.8% share, followed by Income/fixed return funds at 36.2%.

🎯 Investment Thesis

HOLD. While the fund shows positive performance, the slight decrease in NAV per unit and the temporary suspension of fresh unit issuance require monitoring. The fund’s strong asset growth and returns above benchmark are encouraging, but further analysis is needed to determine long-term sustainability. Target price: Rs. 58, Time horizon: Medium Term.

⚡ Flash Summary

Pakistan Income Enhancement Fund (PIEF) reported its quarterly results for the period ending September 30, 2025. The fund generated an annualized return of 9.63% compared to its benchmark of 11.20%. Net assets increased significantly by 152.89% to Rs. 2,711 million compared to Rs. 1,072 million as of June 30, 2025. The NAV per unit also saw an increase to Rs. 56.3482, up from Rs. 55.0133 in the previous quarter.

📌 Key Takeaways

• 📈 Fund’s net assets increased by 152.89% to Rs. 2,711 million.
• 💰 NAV per unit rose to Rs. 56.3482 from Rs. 55.0133.
• 📊 Fund generated an annualized return of 9.63%, underperforming its 11.20% benchmark.
• 📅 WAM (Weighted Average Maturity) of the fund stood at 2.9 years.
• PIBs constituted 58.7% of the fund’s investments.
• 🏦 T-Bills comprised 14% of the fund’s investments.
• 🌐 Country’s current account deficit was USD 624 million for the first two months of FY26.
• Export 📤 growth was 10.2%, while import 📥 growth was 8.8%.
• 💸 Remittances grew by 7.0% to USD 6.4 billion.
• 💹 SBP’s foreign exchange reserves remained around USD 14.4 billion.
• 💲 USD/PKR appreciated by 0.9% to 281.3 during the fiscal year.
• Inflation averaged 4.2% during 1QFY26, down from 9.2% in the corresponding period.
• 🌱 Pakistan’s revised GDP growth was 3.0% in FY25.
• 🚜 Agriculture sector grew by 1.5%, while the Industrial and Services sectors grew by 5.3% and 3.0%, respectively.
• 💰 FBR tax collection increased by 12.8% to PKR 2,885 billion, but missed the target by PKR 198 billion.

🎯 Investment Thesis

Based on the fund’s solid growth in net assets and NAV per unit, along with its strategic asset allocation, I recommend a HOLD rating. The slight underperformance relative to the benchmark warrants further investigation to identify areas for improvement. Price Target: Rs. 58.00, based on anticipated growth and market conditions.

⚡ Flash Summary

The MCB Pakistan Stock Market Fund (PSM) quarterly report for the period ended September 30, 2025, indicates a positive performance. The fund generated a return of 31.39%, slightly below the KSE-100 Index return of 31.73%. The Net Asset Value (NAV) per unit increased significantly to Rs. 339.4486 from Rs. 258.3504. The fund’s equity exposure stood at 90.5%, with major holdings in Commercial Banks, Fertilizers, Textile, and Cement companies. The report anticipates continued GDP growth and improved external financial positions for Pakistan.

📌 Key Takeaways

• 📈 KSE-100 Index increased by 31.7% FYTD.
• 💰 SBP’s foreign exchange reserves remained stable around USD 14.4 billion.
• 💹 USD/PKR appreciated by 0.9% to 281.3 during the fiscal year.
• 📉 Headline inflation averaged 4.2% during 1QFY26, compared to 9.2% last year.
• 🌱 Revised GDP growth clocked at 3.0% in FY25.
• 🏦 FBR tax collection increased by 12.8% in 1QFY26 to PKR 2,885 billion.
• 💹 Average trading volumes for KSE-All Index increased to 956.0 million shares.
• 💲 Average trading value increased by 44.0% to near USD 156 million.
• 🏦 Banks, Cements, and E&P sectors were major contributors to the index rally.
• 💹 PSM generated a return of 31.39%.
• 📊 Overall equity exposure stood at 90.5% on September 30, 2025.
• 💰 Net Assets of the fund stood at Rs. 31,436 million, a 54.64% increase.
• 💹 Net Asset Value (NAV) per unit was Rs. 339.4486, an 81.0982 increase per unit.
• 🔮 GDP growth expected to clock at 3.5% in FY26.
• 🏦 SBP reserves expected to increase to USD 17.5 billion by year end.

🎯 Investment Thesis

Given the fund’s solid performance, diversified holdings, and the positive outlook for the Pakistani economy, a HOLD recommendation is appropriate. The fund has demonstrated an ability to generate returns comparable to the broader market while maintaining a diversified portfolio. Further upside may be realized from the expected GDP growth and stabilization of the external financial position.