PACRA Maintains the Stability Rating of Pakistan Income Fund

Pakistan Income Fund ("PIF" or "the Fund") is categorized under a medium-risk Income Scheme, with the objective of generating returns primarily through debt and fixed income investments without taking excessive risk. As of Jun'26, the Fund's Assets Under Management (AUM) stood at PKR 11,653mln, compared to PKR 2,319mln as of Dec'25 (the last review), reflecting a significant expansion in fund size during the review period. The substantial increase in AUM indicates strong investor participation and increased scale of the Fund's operations. In terms of asset allocation, approximately 40% of the portfolio was maintained in cash and cash equivalents, ~12% in Treasury Bills (T-Bills), ~12% in GoP Ijarah Sukuks, and ~5% in TFCs/Sukuks as of end-Jun'26. The portfolio remained diversified across liquid assets, sovereign-backed instruments, and fixed income securities, consistent with the Fund's medium-risk income mandate. The sizeable cash position also provides flexibility in managing potential redemptions and deploying assets across eligible investment avenues. From a credit quality perspective, approximately 59% of the Fund's assets were invested in Government securities and AAA-rated instruments, while ~13% was allocated to AA+ rated avenues and ~1.3% to AA-rated instruments. The Fund's overall credit profile remains very strong and compliant with PACRA's rating criteria. The significant exposure to sovereign-backed and highly rated instruments provides substantial support to the Fund's creditworthiness and helps contain overall credit risk. The Fund's Weighted Average Maturity (WAM) stood at 422 days as of Jun'26, reflecting high sensitivity to interest rate movements and associated mark-to-market risk. The relatively extended maturity profile, supported by exposure to longer-tenor fixed income instruments, may result in valuation volatility in response to changes in market yields. Accordingly, effective duration management remains important given the Fund's medium-risk income mandate. In terms of performance, the Fund generated a 365-day annualized return of 17.57% as of Jun'26, outperforming its benchmark return of 10.61% by approximately 696 basis points. The strong performance reflects the Fund's ability to generate competitive returns through its fixed income portfolio while maintaining a very strong credit quality profile.
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 Dec 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 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.