Karachi: MCB Investment Management Limited has released its unaudited quarterly report for the MCB DCF Income Fund, covering the period ending September 30, 2026. The report, dated October 30, 2026, highlights several key economic indicators and fund performance metrics, as relayed by the Director of the Management Company.
The country's current account deficit for the first two months of fiscal year 2027 stood at USD 543 million, improving from USD 853 million in the same period last year. Despite a trade deficit increase of 18.8% year-on-year due to a 4.0% rise in exports and an 11.4% increase in imports, remittances inflows rose significantly by 14.7%, amounting to USD 7.3 billion. The State Bank of Pakistan's foreign exchange reserves enhanced to approximately USD 21.4 billion, up from USD 18.4 billion at the previous fiscal year's close. The local currency experienced a minor move against the US dollar, appreciating by 0.4% to 277.1 during the quarter.
Headline inflation averaged 10.2% in the first quarter of fiscal year 2027, a substantial rise from 4.3% in the previous year, largely driven by increased global oil prices. This surge in inflation affected transport and energy-intensive goods, impacting the broader economy.
GDP growth for Pakistan in fiscal year 2026 was recorded at 3.7%, with growth in the Agricultural, Industrial, and Services sectors at 2.9%, 3.5%, and 4.1% respectively. The Federal Board of Revenue's tax collection saw a year-on-year increase of 6.7% during the first quarter of fiscal year 2027, totaling PKR 3,083 billion, surpassing targets by PKR 30 billion.
The MCB DCF Income Fund generated a return of 8.13% during the review period, falling short of its benchmark return of 11.16%. The weighted average maturity (WAM) of the fund increased to 494 days. Fund allocation at period-end was primarily in T-Bills, PIBs, and GOP Ijara Sukuk, with investments at 16.9%, 21.8%, and 12.2% respectively. According to information available from the Pakistan Stock Exchange (PSX), the fund's net assets decreased by 4.76%, standing at Rs. 15,317 million as of September 30, 2026, down from Rs. 16,084 million on June 30, 2026. The Net Asset Value (NAV) per unit increased by Rs. 2.255, from Rs. 110.0737 to Rs. 112.3287 during the quarter.
The report reflects the intricate interplay of macroeconomic factors and market conditions affecting the fund's performance, amidst an evolving economic landscape.