PACRA Assigns Initial Stability Rating to MCB Money Market Fund

MCB Money Market Fund ("MCB-MMF" or "the Fund") is categorized under a low-risk profile, with the objective of providing unit holders competitive returns from a low-risk portfolio of short duration assets while maintaining high liquidity. The Fund's strategy prioritizes capital preservation and efficient liquidity management, making it suitable for investors seeking minimal exposure to interest rate movements while maintaining ready access to funds. The Fund was launched on July 8, 2026. As of Aug'26, the Fund's Assets Under Management (AUM) stood at PKR 12,687mln, reflecting a strong initial traction since launch, indicative of early and strong investor confidence in the Fund's money market offering. In terms of asset allocation, approximately 96.1% of the portfolio was invested in cash, with ~3.1% in Treasury Bills and the remainder in other eligible instruments, reflecting a near-exclusively liquid portfolio positioning consistent with the Fund's low-risk, capital preservation mandate. From a credit quality perspective, approximately 99.2% of the Fund's assets were invested in Government Securities and AAA rated instruments, with the remainder in other exposures. This near-pristine credit profile is considered a key credit strength of the Fund, providing the highest possible quality anchor to the portfolio and underscoring the Fund's strong commitment to its conservative investment approach. The Fund's Weighted Average Maturity (WAM) stood at 2 days as of Aug'26, reflecting virtually zero sensitivity to interest rate movements and reinforcing the Fund's strong liquidity position. Meanwhile, the unit holding pattern reflects a very high degree of concentration, with the top 10 investors accounting for ~100% of the Fund's total holdings. While this exposes the Fund to elevated redemption risk from a narrow investor base, the Fund's near-fully liquid asset allocation and two-day WAM provide strong comfort regarding its ability to meet any potential redemption requirements swiftly. Investor concentration is expected to diversify progressively as the Fund gains scale and broadens its investor base over time. In terms of performance, the Fund has delivered an annualized return of 11.90% since inception against a benchmark return of 11.28%, reflecting a notable outperformance of approximately 62 basis points. This above-benchmark outcome is considered a commendable result for a newly launched low-risk money market fund, demonstrating the Fund's strong capacity to generate competitive risk-adjusted returns from the outset while maintaining its conservative, liquidity-first investment discipline.
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 theSecurities and Exchange Commission of Pakistan (SECP). It holds licenses for asset management, investment advisory, and pension fund management, catering to both Conventional and Shariahinvestment solutions. 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’smajor 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 strong governance, objective decision-making, and alignment with regulatory best practices. The Company’s assets under management (AUM) have grown significantly, reaching ~PKR 387 Billion as of Jun'26.