PACRA Maintains the Stability Rating of Pakistan Income Enhancement Fund

Pakistan Income Enhancement Fund ("PIEF" or "the Fund") is categorized under a medium-risk Aggressive Fixed Income Scheme, with the objective of generating returns through an aggressive investment strategy in the debt and fixed income market. As of Jun'26, the Fund's Assets Under Management (AUM) stood at PKR 2,062mln, compared to PKR 2,632mln as of the last review, reflecting a marginal contraction in fund size during the review period. In terms of asset allocation, approximately 44% of the portfolio was invested in Pakistan Investment Bonds (PIBs), ~19% in TFCs/Sukuks, ~16% in GoP Ijarah Sukuks, and ~10% in cash and cash equivalents as of end-Jun'26. The portfolio remained predominantly invested in fixed income and sovereign-backed instruments, consistent with the Fund's aggressive fixed income mandate. From a credit quality perspective, approximately 78% of the Fund's assets were invested in Government securities and AAA-rated instruments, while ~18% was allocated to A1-rated instruments. The Fund's overall credit profile remains strong and compliant with PACRA's rating criteria. The significant exposure to sovereign-backed and highly rated instruments provides meaningful support to the Fund's creditworthiness, while the remaining portfolio is maintained within permissible investment avenues. The Fund's Weighted Average Maturity (WAM) stood at 183 days as of Jun'26, reflecting medium sensitivity to interest rate movements and associated mark-to-market risk. The duration profile, supported by meaningful exposure to PIBs and other fixed income securities, exposes the Fund to valuation fluctuations amid changes in market yields. This remains consistent with the Fund's aggressive investment strategy and return-oriented mandate. In terms of performance, the Fund generated a 365-day annualized return of 17.66% as of Jun'26, significantly outperforming its benchmark return of 11.31% by approximately 635 basis points. The strong relative performance demonstrates the Fund's ability to generate enhanced returns through its aggressive fixed income strategy amid prevailing market conditions.
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.