PACRA Assigns Initial Stability Rating to MCB Investments Savings Fund

MCB Investment Savings Fund (or the “Fund”) is classified under a moderate risk profile and is designed to deliver returns from an aggressive investment strategy in the debt and fixed income market. The Fund currently has one allocation plan under its umbrella, MCB Investment Savings Plan I (“MCB ISP-I” or the “Plan”), which was launched on August 5, 2024. Its stated objective is to maximize return through active allocation across authorized fixed income avenues, while balancing liquidity needs and risk management considerations. As of June 2025, the Plan reported Assets under Management (AUM) of PKR 15,434 million. The portfolio was primarily allocated to Government Treasury Bills (~64.6%), supplemented by cash placements (~35.3%) and a negligible balance in receivables/others (~0.1%). In credit quality terms, 64.6% of assets were sovereign/AAA-rated, while ~35.3% were placed with an AA+ rated commercial bank. The Plan’s Weighted Average Maturity (WAM) stood at 44 days, reflecting very low duration exposure and limited sensitivity to adverse policy rate movements. As of June 2025, the top ten investors represented ~69% of Net Assets, with ~58% attributable to affiliated corporates and institutions. While the elevated investor concentration underscores susceptibility to large-ticket redemptions, comfort is drawn from the sizeable affiliate-linked share, which imparts stability and materially mitigates redemption volatility. Since inception in August 2024 up to June 2025, the Plan delivered an annualized return of ~18.51% against the benchmark return of ~13.26%. This alpha of ~5.25% was driven by tactical allocation and active liquidity deployment, while volatility remained contained at ~1.2%, consistent with the stabilizing effect of sovereign-heavy exposures. While the portfolio is presently conservative, centered on short-term sovereign securities and bank placements, the Offering Document allows flexibility for more aggressive deployment. Any such shift in strategy, including reallocation toward higher-risk assets, could materially alter the Plan’s risk-return dynamics.
Going forward, any material changes in the investment policy and/or compliance with the rating criteria for the assigned rating would have an impact on the rating.

About the Entity
MCB Investment Management Limited (MCBIM) is a public listed company regulated by the Securities and Exchange Commission of Pakistan (SECP). It holds licenses for asset management, investment advisory, and pension fund management, catering to both Conventional and Shariah investment solutions. As of June 2025, MCBIM manages a diversified portfolio, including 26 Open-End Mutual Funds and 4 Voluntary Pension Schemes, while also maintaining a leading position in Separately Managed Accounts (SMA) and investment advisory services. MCBIM’s major shareholders include MCB Bank Limited (~81.42%), Adamjee Insurance Company Limited (~7.59%), and the general public (~9.28%). Mr. Khawaja Khalil Shah serves as the Chief Executive Officer of the company. The Board comprises a balanced composition of 4 Non-Executive Directors and 3 Independent Directors, ensuring robust governance, objective decision-making, and alignment with regulatory best practices. The Company’s assets under management (AUM) have grown significantly, reaching approximately PKR 393 Billion as of June 2025, reflecting its strong market presence and consistent growth in Pakistan’s asset management industry.