Karachi: MCB Investment Management Limited has disclosed a notable downturn in the financial performance of the Alhamra Islamic Income Fund for the fiscal year ending June 30, 2026. The Board of Directors, in a meeting held at the company's head office in Karachi on August 4, 2026, approved the financial results, which indicate substantial changes in income streams and overall performance.

According to the financial statement, the total income for the fund fell to 2.86 billion rupees from 6.23 billion rupees in the previous year, marking a very large or significant move in the fund's financial trajectory. This decline is primarily attributed to reduced income from key revenue sources such as savings accounts and government securities. Income from savings accounts decreased to 1.13 billion rupees from 1.78 billion rupees, while income from government securities dropped to 1.93 billion rupees from 2.94 billion rupees.

The fund also experienced a downturn in returns from corporate sukuk certificates, which fell to 108.84 million rupees from 304.73 million rupees. Conversely, there was a moderate move in profit on term deposit receipts and certificates of musharakah, rising to 95.16 million rupees from 80.53 million rupees.

According to information available from the Pakistan Stock Exchange (PSX), the Alhamra Islamic Income Fund's net realized loss on the sale of investments was 393.29 million rupees, contrasting sharply with the previous year's gain of 110.87 million rupees. This change, alongside a significant unrealized diminution on re-measurement of investments, which stood at 67.10 million rupees compared to an appreciation of 516.53 million rupees the prior year, has further impacted the fund's financial standing.

Expenses for the fund also saw a substantial decrease, with total expenses dropping to 366.38 million rupees from 727.63 million rupees, reflecting a very large or significant move. The most notable reductions were in the remuneration of MCB Investment Management Limited and associated taxes.

As a result of these financial developments, the net income for the year after taxation fell to 2.49 billion rupees from 5.50 billion rupees, indicating another significant move in the fund's profitability. The fund's accounting income available for distribution also declined to 384.34 million rupees from 677.61 million rupees.

These results highlight the challenges faced by the Alhamra Islamic Income Fund in adjusting to shifting market conditions and underscore the broader trends affecting income funds within the designated market category.