Karachi: The MCB DCF Income Fund reported a strong annual performance with a return of 19.90% for the fiscal year ended June 30, 2024, despite challenges in the economic landscape. This return was a significant gain compared to the fund’s benchmark, underscoring effective fund management and investment strategies that capitalized on Pakistan’s evolving economic reforms.

According to information available from the Pakistan Stock Exchange (PSX), the fund’s net asset value (NAV) per unit increased from Rs. 108.0027 to Rs. 109.0852 over the fiscal year, representing an annual increase of Rs. 1.0825 per unit. The fund’s net assets grew substantially, from Rs. 7,706 million to Rs. 26,970 million, marking a robust expansion of 54.29%.

Pakistan’s economic recovery was bolstered by a new Stand-by Arrangement (SBA) with the International Monetary Fund (IMF) secured in June 2023, which infused USD 3.0 billion into the economy, helping stabilize macroeconomic indicators. The Pakistani rupee appreciated against the dollar, and the country’s foreign exchange reserves increased, reflecting confidence in Pakistan’s market reforms and fiscal discipline.

Inflation pressures began to ease, with headline inflation averaging 23.9% for the year, a reduction from previous highs due to government interventions in monetary policy and subsidy adjustments. The fund expects GDP growth to rebound to 3.5% in FY25, buoyed by stable macroeconomic conditions and enhanced investor confidence.

The MCB DCF Income Fund’s portfolio was primarily allocated to government securities, benefitting from high-interest rates and a reduction in inflation expectations. This strategic positioning is expected to continue benefiting the fund as Pakistan progresses with its economic policies under the IMF’s guidance.