MCB DCF Income Fund Reports Substantial Increase in Income and Net Earnings

Strategic Insights -

The Board of Directors of MCB Investments Management Limited, the management company of MCB DCF Income Fund, has approved the financial results for the year ended June 30, 2024. The results show a significant increase in income and net earnings for the fund. The primary sources of income for the fund include profits on bank deposits and term deposit receipts, which saw a notable jump. The income from government securities also rose sharply, reaching 2.10 billion rupees in 2024. However, the fund recorded a loss on sale of investments at 79.65 million rupees and an unrealized gain on re-measurement of investments net of investments through profit or loss. Total expenses for the year were significantly higher, totaling 298.54 million rupees compared to 140.31 million rupees in the prior year.

Key Takeaways:

  • The fund reported a total income of 2.58 billion rupees for the fiscal year 2024, a notable increase from the 1.03 billion rupees reported in the previous year.
  • The primary sources of income for the fund included profits on bank deposits and term deposit receipts, which saw an impressive jump from 185.41 million rupees in 2023 to 269.07 million rupees in 2024.
  • Income from government securities also rose sharply, reaching 2.10 billion rupees in 2024, up from 754.67 million rupees the previous year.
  • The fund recorded a loss on sale of investments at 79.65 million rupees and an unrealized gain on re-measurement of investments net of investments through profit or loss, which turned around from a loss of 75.75 million rupees in 2023 to a gain of 71.46 million rupees in 2024.
  • The fund declared a net income after taxation of 1.79 billion rupees, compared to 892.01 million rupees in the previous year.
  • The allocation of net income for the year included accounting income available for distribution, relating to capital gains and equaling capital gains for the year, totaling 1.79 billion rupees.
  • Earnings per unit (EPU) is not disclosed as the management deems the calculation of weighted average number of units impracticable.
  • The fund's robust performance and commitment to delivering significant returns to investors underscore the substantial increase in both income and net earnings.

Statistics:

  • Total income: 2.58 billion rupees
  • Income from profits on bank deposits and term deposit receipts: 269.07 million rupees (up from 185.41 million rupees in 2023)
  • Income from government securities: 2.10 billion rupees (up from 754.67 million rupees in 2023)
  • Loss on sale of investments: 79.65 million rupees
  • Unrealized gain on re-measurement of investments: 71.46 million rupees
  • Total expenses: 298.54 million rupees
  • Net income before tax: 2.28 billion rupees
  • Net income after taxation: 1.79 billion rupees
  • Total comprehensive income: 1.79 billion rupees
  • Allocation of net income: 1.79 billion rupees

Sources:

  • "MCB DCF Income Fund Reports Substantial Increase in Income and Net Earnings". Pakistan Stock Exchange (PSX).
  • MCB Investments Management Limited. "Financial Results for the Year Ended June 30, 2024".
  • MCB Investments Management Limited. "Board of Directors Approves Financial Results". Press Release.