Karachi: The Lakson Islamic Money Market Fund (LIMMF), managed by Lakson Investments Limited, reported a return of 9.72% for the first quarter of fiscal year 2026, falling short of its benchmark's 10.07%, resulting in an underperformance of 0.35%, as detailed in the fund’s quarterly report released on November 7, 2025. The fund's strategy aims to provide stable returns with low volatility, aligning with money market conditions while ensuring capital preservation.
According to the report, the fund’s portfolio, which is compliant with Shariah principles, includes short-term investments in government securities, placements, and Sukuk, with a weighted average maturity of 69 days. The total fund size as of September 30, 2025, was PKR 3,032 million. Asset allocation primarily consisted of cash (11.6%), Short Term Sukuk (17.27%), placements with banks and DFIs (67.1%), and others (13.2%).
Economic indicators for Pakistan during the period showed signs of stabilization. Inflation averaged 4.2% in Q1-FY26, a decline from last year's 9.2%, with the State Bank of Pakistan (SBP) targeting a 5-7% inflation range. The current account deficit for the initial months of FY26 was USD 624 million, compared to USD 430 million in the previous year. Exports increased by 11% to USD 6.7 billion, while imports rose by 10% to USD 12.5 billion. Remittances grew by 7% to USD 6.35 billion, enhancing the foreign exchange reserves to USD 19.8 billion by September end.
Significant developments included a circular debt resolution agreement on September 24, 2025, facilitating a PKR 1.225 trillion bank loan. The agreement is expected to bolster financial sustainability within the power sector. The SBP maintained the policy rate at 11% in September, reflecting stable economic conditions, although a 41 basis points rise in MTB yields suggested a slower pace of monetary easing than anticipated.
According to information available from the Pakistan Stock Exchange (PSX), the LIMMF is an open-end fund listed on the exchange, focusing on investments with a minimum "AA" rating. The fund’s management conducts thorough credit analyses to mitigate risks. For the period under review, the fund's net assets increased from PKR 14,826.39 million to PKR 15,813.83 million, with a net asset value per unit rising from PKR 102.2345 to PKR 105.0068.
Looking ahead, Pakistan's economic outlook remains cautiously optimistic, with GDP growth for FY26 expected to align with the SBP’s forecast range of 3.25-4.25%. The market's positive momentum is anticipated to continue, supported by strong macroeconomic indicators, improved investor sentiment, and potential foreign investments. The stabilization of the domestic political environment and significant policy achievements, such as the resolution of the power sector's circular debt, are also expected to sustain investor confidence.