MCB Investment Management Limited ("MCB Funds" or the "AMC") is a Public Listed Company, regulated by the SECP. The AMC holds multiple licenses, including the Pension Fund Manager License, Asset Management Services License, and Investment Advisory Services License.

MCB Investment Management Limited was incorporated on August 30, 2000 as Arif Habib Investment Management Limited (AHIML). In 2008, the Company was listed on Pakistan Stock Exchange Limited and consequently was renamed as Arif Habib Investments Limited (AHIL). In January 19, 2011, a transfer agreement was signed between Arif Habib Corporation Limited (AHCL) [the then parent of AHIL] and MCB Bank Limited (MCB Bank)[the then parent of MCB Asset Management Company Limited (MCB AMC)] for transfer of the entire business of MCB AM to AHIL to achieve synergies in business and to have access to a wider distribution network. The amalgamation scheme was approved by shareholders of AHIL and MCB AMC as well as SECP. Pursuant to the scheme of amalgamation, the name of AHIL was changed to MCB-Arif Habib Savings and Investments Limited (MCB-AH) on May 23, 2013. On April 18, 2023, MCB Bank being the parent Company of MCB-AH, has acquired 30.09% shares of MCB-AH from AHCL. By virtue of this transaction, MCB Bank's shareholding in MCB-AH has increased from 51.33% to 81.42% and AHCL no longer holds any shares in MCB-AH. Resultantly, the AMC was renamed to MCB Investment Management Limited (MCBIM).

The market share of the AMC stood at 10% at the end of Jun'25 (Jun'24: 8%), reflecting strong performance during the year as the AMC was able to significantly grow its AUM base.

The AMC caters to both conventional and shariah-compliant clientele and is currently managing a diverse product slate of twenty-two open-end funds, two voluntary pension and two KP employees pension schemes.

The average top-ten investor's concentration stood at 28% as of the end of Jun`25. The average related party holding was at adequate level.

The shareholding structure of the AMC comprising MCB Bank Limited 81.42%, Adamjee Insurance Company Limited 7.59%, and the general public holds the remaining 10.99% of the shares.

MCB Bank Limited is one of the oldest and prestigious banks in Pakistan since 1947. The majority stake of the bank is owned by the Nishat Group.

MCB Bank Limited (rated 'AAA') has an asset base of -PKR 3.3trln at the end-Jun'25 accompanied by a profit after tax of -PKR 27.3bln. Comfort can be drawn from the strong financial profiles and the support expected by sponsors if needed.

The AMC's control vests in an eight-member board of directors, including the CEO. There are four non-executive directors, while three directors are independent.

The Chairperson, Mr. Haroun Rashid, besides holding this office, also serves in senior positions of several prestigious organizations. The Board comprises seasoned professionals with vast experience in banking, investments, insurance, and technology. Majority of the directors are compliant with the Directors Training Program.

To ensure an effective control environment and compliance with reporting standards, it has constituted an Audit Committee and HR Committee at the board level.

MCB Funds has an in-house internal audit department to monitor the internal controls. The external auditors of the AMC are A. F. Ferguson & Co. They have a satisfactory QCR rating and are classified in the 'A' category of the SBP Panel of Auditors.

MCB Funds maintains a well-defined organizational structure with independent reporting lines to MAN-COM members. The structure encompasses all core functions including IT, Compliance, Finance, Operations, Risk Management, Sales & Distribution, Investments, Quality Assurance & Customer Services, HR & Administration, and Digital Business & Marketing. Specialized sub-departments such as Product Development, Research, Corporate Affairs, Investor Services, and Training & Communications further enhance functional depth. Internal Audit operates independently with direct reporting to the CEO, reinforcing governance and control oversight.

The management team of the AMC comprises experienced and qualified professionals. The CEO, Mr. Khawaja Khalil brings with him more than 30 years of banking experience. Mr. Khalil has also contributed significantly to Al-Faysal Investment Bank and Faysal Bank Limited during his career. The CIO, Mr. Muhammad Asim, has an industry experience of nearly two decades. The AMC has witnessed a very low turnover rate in the key management positions, resulting in stable management.

MCB Funds has enhanced its technological infrastructure through the MCB Funds SalesApp, digitizing sales processes and integrating the industry's first real-time NADRA biometric verification for smoother account openings. The firm also won three prestigious awards at the Pakistan Digital Awards 2024 and secured the highest number of Contributory Pension accounts in collaboration with the KP government. Investors can now also invest through RAAST and MCB Live. MCB Funds has introduced a WhatsApp bot to engage customers, enabling them to instantly access account balances, statements, and many other features within minutes.

In line with best practices, MCB Funds operates separate Risk Management and Compliance departments, each led by different individuals, ensuring adherence to statutory regulations and internal investment guidelines. Moreover, the AMC has invested in developing its own digital platform, providing greater operational control and efficiency compared to peers that rely on third-party vendors. The AMC maintains a robust control environment, underpinned by well-defined policies, independent oversight functions, and strong internal checks that ensure operational soundness and regulatory compliance.

The Company’s credit risk remains contained, supported by its conservative investment strategy with significant allocation towards government securities and highly rated counterparties. Investments account for ~66% of total assets, providing strong asset quality coverage relative to borrowings. The Risk Management department conducts regular evaluations of debt instruments for each collective investment scheme, ensuring compliance with internal limits and SECP regulations. Concentration risk is also managed through diversification across issuers and counterparties, which mitigates potential exposure to any single obligor.

MCB Funds ensures a strong liquidity profile by maintaining sizeable allocations in readily marketable instruments, primarily government securities and bank placements. The Risk Management department closely monitors redemption patterns against portfolio allocations, enabling proactive management of potential mismatches. This prudent approach provides the Company with sufficient flexibility to meet investor redemptions in a timely manner.

The Risk Management department has developed in-house measures to monitor market risk actively. Various tools, including volatility assessments and value-at-risk estimates, are applied across marketable securities to gauge potential downside exposures. The Company maintains a diversified fund mix with the top fund contributing 29% of AUMs, thereby reducing reliance on a single product and mitigating concentration risk. In addition, the allocation towards government-backed instruments provides a cushion against adverse market movements, supporting overall portfolio stability.

The Investment Committee comprises the CEO, CIO, Head of Equity, Head of Fixed Income, Portfolio Manager Equities, Head of Research, Fund Manager Fixed Income – Investment Advisory, and respective fund managers.

The Investment Committee reviews the investment strategy of each fund under management and its performance regularly to incorporate the impact of various factors on funds' performance.

The AMC have an in-house research department headed by Mr. Raza Inam, CFA. The research team follows a rigorous framework of top down approach with extensive coverage of macro economy, listed sectors and companies. This is achieved through detailed macro, sectors and companies financial models, which are linked with the research terminal to generate real-time comparisons within and across sectors.

MCB Funds offers a comprehensive digital platform where customers can monitor investments, perform online transactions, and access 24/7 customer support across various channels, including phone, email, and social media. MCB Funds has adopted Net Promoter Score (NPS) as a matric to ascertain customer sentiments and as per latest NPS score of 61%; the customers have rated MCB Funds as GREAT.

MCB Funds promptly distributes unit holder statements and publishes Fund Manager Reports, offering insights on macroeconomic trends and reviews of the equity and money markets.

The AMC has a strong distribution network of seven branches across the country and agreements with third-party distributors.

The AUMs base increased by 75% to PKR 394bln at end-Jun'25 (Jun'24: PKR 224bln), primarily driven by fresh inflows from new customers. The overall performance of the funds remained satisfactory and above the benchmark, reflecting sustained investor confidence.

The management and investment advisory fee of the AMC significantly increased to PKR 4.451bln at the end of FY25 (Jun’24: PKR 1.6bln). The PAT also improved to PKR 1.75bln at the end of FY25 (Jun’24: PKR 861mln).