PACRA Maintains the Stability Rating of MCB Cash Management Optimizer

MCB Cash Management Optimizer ("MCB-CMO" 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. As of Jun'26, the Fund's Assets Under Management (AUM) stood at PKR 74,775mln, compared to PKR 105,604mln as of Dec'25 (the last review), reflecting a contraction in fund size during the review period, primarily attributable to an overall reduction in the money market fund category size. In terms of asset allocation, approximately 81% of the portfolio was invested in cash, ~13% in Treasury Bills, and ~3% in GoP Ijarah Sukuks, reflecting a well-diversified yet highly liquid portfolio positioning across prime money market instruments, consistent with the Fund's low-risk mandate. From a credit quality perspective, approximately 97% 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 very strong commitment to its conservative investment approach. The Fund's Weighted Average Maturity (WAM) stood at 17 days as of Jun'26, reflecting very limited sensitivity to interest rate movements and reinforcing the Fund's very strong liquidity position. This short WAM profile enables the Fund to reprice its portfolio rapidly in response to changes in the monetary policy environment, thereby protecting unit holders from adverse interest rate movements. Meanwhile, the unit holding pattern indicates moderate concentration, with the top 10 investors accounting for ~45% of the Fund's total holdings, thereby exposing the Fund to moderate redemption risk; however, the Fund's highly liquid asset allocation and very short WAM profile provide very strong comfort regarding its ability to meet potential redemption requirements swiftly. In terms of performance, the Fund reported an annualized one-year return of 10.26% as of Jun'26, against a benchmark return of 10.73%, reflecting an underperformance of approximately 47 basis points. This gap is broadly attributable to the Fund's conservative asset allocation and short-duration investment strategy, which, while prioritizing liquidity and capital preservation, has modestly constrained yield optimization relative to the benchmark, a trade-off that remains consistent with the Fund's very strong liquidity-first mandate and low-risk investment discipline throughout the review period.
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.