Karachi: The Board of Directors of AKD Investment Management Limited (AKDIML) has released the annual report for the AKD Islamic Stock Fund (AKDISSF) for the fiscal year ending June 30, 2026. The report details the financial performance of the fund, as well as distributions approved for unit holders.
According to the report, the AKD Islamic Stock Fund achieved a return of 26.72% for the fiscal year 2026. This figure stands in comparison to the benchmark KMI-30 Index, which recorded a return of 39.18% over the same period. The Chief Executive, under the authority granted by the Board of Directors, approved a total distribution of PKR 1.00 per unit to the unit holders for the year ended June 30, 2026.
The AKD Investment Management Limited also oversees various other funds, including the AKD Opportunity Fund, Golden Arrow Stock Fund, AKD Index Tracker Fund, AKD Cash Fund, AKD Aggressive Income Fund, AKD Islamic Income Fund, AKD Islamic Cash Fund, and AKD Alpha Income Fund. Each of these funds reported differing levels of performance relative to their respective benchmarks.
The AKD Opportunity Fund achieved a return of 37.01%, falling short of the KSE-100 Index return of 43.52%. Golden Arrow Stock Fund posted a return of 29.53%, also below the KSE-100 Index. The AKD Index Tracker Fund, meanwhile, reported a return of 41.64%, closely trailing its benchmark.
In the income fund category, the AKD Cash Fund returned 10.50% compared to a benchmark of 10.73%, while the AKD Islamic Income Fund outperformed its benchmark with a return of 9.49%, compared to 9.43%. The AKD Aggressive Income Fund recorded a significant return of 18.06% against a benchmark of 11.31%. The AKD Islamic Cash Fund's performance stood at 11.24%, outperforming its benchmark of 9.37%. Lastly, the AKD Alpha Income Fund, which commenced operations in April 2026, achieved an annualized return of 13.68%, surpassing the benchmark of 11.31%.
The annual report also highlights broader macroeconomic factors impacting the financial markets. FY26 was marked by a shift from post-stabilization recovery to a more externally constrained macroeconomic environment, with a provisional real GDP growth of 3.70% up from 3.18% in FY25. Challenges included escalating geopolitical tensions in the Middle East, which led to a rise in global energy prices and supply-chain costs.
Inflation emerged as a pivotal factor, with headline CPI inflation accelerating sharply. Average CPI inflation for FY26 was recorded at 7.05%, up from 4.49% in the previous year. Monetary policy adjustments were made by the State Bank of Pakistan, with the policy rate adjusted to respond to these external pressures.
According to information available from the Pakistan Stock Exchange (PSX), the Large-Scale Manufacturing sector showed a positive turnaround with a 4.98% growth, reversing a previous contraction. Fiscal consolidation efforts also showed progress, with the fiscal deficit narrowing to 1.6% of GDP, supported by stronger revenue mobilization.
On the external front, goods imports rose by 9.00% to $64.47 billion, while goods exports fell by 4.71% to $30.82 billion, widening the trade deficit. Despite this, the current account deficit remained manageable, bolstered by record remittances of $41.59 billion.
Overall, the AKD Islamic Stock Fund's performance in FY26 reflects both the opportunities and challenges present in the current economic landscape, underscored by a combination of internal fund performance and external macroeconomic conditions.