Karachi: The Board of Directors of AKD Investment Management Limited (AKDIML) presented its annual report for the fiscal year ending June 30, 2026, highlighting varying performances across its portfolio of funds. This year was marked by a significant shift in Pakistan's macroeconomic environment, characterized by easing inflation and a rebound in real GDP growth to 3.70%, according to the report released on October 28, 2026.
The AKD Opportunity Fund recorded a return of 37.01%, trailing behind the benchmark KSE-100 Index's return of 43.52%. The fund distributed PKR 3.00 per unit to its investors. Meanwhile, the Golden Arrow Stock Fund achieved a 29.53% return, also underperforming the KSE-100 Index. A distribution of PKR 0.50 per unit was approved for its unit holders.
The AKD Islamic Stock Fund reported a return of 26.72%, in contrast to the 39.18% return of its benchmark, the KMI-30 Index. Investors received a distribution of PKR 1.00 per unit. The AKD Index Tracker Fund, however, posted a return of 41.64%, closely aligning with the KSE-100 Index, and distributed PKR 2.00 per unit.
Fixed income funds showed varied performance as well. The AKD Cash Fund returned 10.50%, slightly below its benchmark, with a distribution of PKR 5.31 per unit. The AKD Islamic Income Fund had a return of 9.49%, marginally outperforming its benchmark, and distributed PKR 3.50 per unit. The AKD Aggressive Income Fund delivered a return of 18.06%, significantly surpassing its benchmark, resulting in a distribution of PKR 8.33 per unit. The AKD Islamic Cash Fund returned 11.24%, exceeding its benchmark, with a distribution of PKR 5.18 per unit.
The newly launched AKD Alpha Income Fund posted an annualized return of 13.68% from its inception on April 10, 2026, outperforming the benchmark, yet no distribution was made.
Macroeconomic conditions in Pakistan showed signs of improvement with provisional real GDP growth increasing to 3.70% from 3.18% in the previous fiscal year. The fiscal deficit narrowed to 1.6% of GDP, supported by stronger revenue mobilization and lower interest expenditure. According to information available from the Pakistan Stock Exchange (PSX), the KSE-100 Index closed FY26 at 180,302 points, marking a 43.52% gain during the year.
Despite these positive developments, escalating geopolitical tensions in the Middle East, leading to a surge in global energy prices, posed a challenge. The State Bank of Pakistan increased the policy rate by 100 basis points to 11.50% in April 2026 to address inflationary pressures. Headline CPI inflation accelerated to 11.07% in June, averaging 7.05% for the fiscal year.
The equity market's strong performance was driven by sectors such as banks, oil and gas exploration, and fertilizer. However, volatility increased in the latter half of the year due to geopolitical tensions. The market witnessed significant IPO activity, with 11 companies raising approximately PKR 18.39 billion.
As Pakistan continues to navigate through external challenges and inflationary pressures, the outlook remains sensitive to global commodity prices and geopolitical developments. The emphasis on fiscal consolidation and macroeconomic discipline will be crucial in sustaining the positive economic trajectory observed in FY26.