PACRA Maintains the Stability Rating of Pakistan Cash Management Fund

Pakistan Cash Management Fund ("PCMF" or "the Fund") is categorized under a low-risk Money Market Scheme, with the objective of providing competitive returns to unit holders through a low-risk portfolio of short-duration assets while maintaining high liquidity. As of Jun'26, the Fund's Assets Under Management (AUM) stood at PKR 1,467mln, compared to PKR 7,329mln as of Dec'25 (the last review), reflecting a significant decline in fund size during the review period. The contraction in AUM was primarily attributable to the reduction in the overall size of the Money Market Fund category during the period. In terms of asset allocation, approximately 27% of the portfolio was invested in Treasury Bills (T-Bills), ~12% in GoP Ijarah Sukuks, and ~11% in cash and cash equivalents as of end-Jun'26. The portfolio remained positioned toward liquid, short-duration instruments, consistent with the Fund's low-risk mandate and objective of maintaining high liquidity. From a credit quality perspective, approximately 50% of the Fund's assets were invested in Government securities and AAA-rated instruments, while ~20% was allocated to A1+ rated avenues. The Fund's overall credit profile remains very strong, supported by substantial exposure to sovereign-backed and highest-quality rated instruments. The Fund's Weighted Average Maturity (WAM) stood at 83 days as of Jun'26, reflecting low sensitivity to interest rate movements and credit risk. The short-duration profile supports effective liquidity management and allows the Fund to reprice its portfolio relatively quickly in response to changing market conditions, while limiting exposure to significant mark-to-market volatility. In terms of performance, the Fund generated a 365-day annualized return of 10.12% as of Jun'26, compared to its benchmark return of 10.73%, resulting in an underperformance of approximately 61 basis points. The relative performance reflects the Fund's portfolio positioning and prevailing market dynamics during the review period, while the Fund continued to maintain its low-risk and highly liquid investment 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.