PACRA Maintains Stability Rating of Pakistan Cash Management Fund

Pakistan Cash Management Fund ("PCF" or "the Fund") is a low-risk money market Fund, designed to provide investors with competitive returns while maintaining high liquidity and capital preservation. The Fund follows a conservative investment approach, primarily allocating to short-duration government securities and high-quality money market instruments, making it an attractive option for risk-averse investors seeking stable returns. As of December 2024, the Fund reported Assets Under Management (AUM) of PKR 9.2 billion, reflecting its established presence in Pakistan's money market sector. In terms of asset class, 84% was invested in Treasury Bills, 8% in bank deposits, and 3% in Government of Pakistan Ijara Sukuks, 5% in Short-term sukuks, with the remaining allocation diversified across other approved instruments. From a credit quality perspective, the Fund demonstrates prudent risk management with about 89% of assets invested in Government Securities and AAA rated instruments, 5% in A1-rated avenues, 5% in AA rated instruments, and the balance in other high-quality assets. This allocation underscores the Fund's commitment to minimizing credit risk while ensuring stable returns for investors. The Fund's risk parameters reflect its disciplined approach, with a 60-day Weighted Average Maturity (WAM) that aligns with its short-term investment mandate and liquidity objectives. This positioning provides moderate exposure to interest rate movements while maintaining the flexibility to manage market volatility effectively.
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 ratings.

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 December 2024, 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 588 Billion as of December 2024, reflecting its strong market presence and consistent growth in Pakistan’s asset management industry.