Karachi: The Board of Directors of AKD Investment Management Limited (AKDIML) has released the annual report for its range of funds, including the AKD Opportunity Fund and the Golden Arrow Stock Fund, for the financial year ending June 30, 2026. The report highlights the funds’ performance against challenging macroeconomic conditions.
The AKD Opportunity Fund returned 37.01%, underperforming its benchmark, the KSE-100 Index, which achieved a 43.52% return. Meanwhile, the Golden Arrow Stock Fund posted a return of 29.53%, also underperforming the same benchmark. According to information available from the Pakistan Stock Exchange (PSX), these figures reflect a big move and a very large or significant move, respectively, given the differences from the benchmark.
AKD Islamic Stock Fund recorded a return of 26.72%, falling short of the KMI-30 Index benchmark return of 39.18%. The AKD Index Tracker Fund, however, performed closely with a return of 41.64%, slightly under the benchmark KSE-100 Index return of 43.52%.
Among income funds, the AKD Aggressive Income Fund posted a return of 18.06%, significantly surpassing its benchmark return of 11.31%, marking a very large or significant move. The AKD Islamic Income Fund showed a moderate move with a return of 9.49%, marginally above its benchmark of 9.43%. The AKD Islamic Cash Fund, previously known as the AKD Islamic Daily Dividend Fund, achieved a return of 11.24%, above the benchmark return of 9.37%.
The newly launched AKD Alpha Income Fund, since its inception on April 10, 2026, reported an annualized return of 13.68% compared to the benchmark return of 11.31%. The AKD Cash Fund returned 10.50%, slightly underperforming its benchmark of 10.73%, indicating a minor move.
The macroeconomic backdrop for FY26 was characterized by a transition from post-stabilization recovery to a more constrained environment due to external pressures. The fiscal year began with improved fundamentals, supported by easing inflation and fiscal consolidation. However, geopolitical tensions in the Middle East toward the year-end led to a rise in global energy prices, causing disruptions that affected Pakistan's inflationary trajectory.
The State Bank of Pakistan (SBP) maintained a supportive monetary policy through most of FY26, with an initial policy rate of 11.00%, which was reduced before being increased again due to external pressures. Headline inflation saw a sharp increase in the fourth quarter, with average CPI inflation for FY26 rising to 7.05%.
The fiscal deficit narrowed significantly during the period, reflecting stronger revenue mobilization and reduced expenditure, aligning with the IMF-supported consolidation program. Externally, the trade deficit widened, although the current account remained manageable thanks to record remittances.
Despite these challenges, external buffers strengthened, with SBP foreign exchange reserves reaching $18.38 billion by the end of the fiscal year, contributing to the country's external resilience. The Pakistani rupee remained stable, providing some relief against the backdrop of global uncertainties.