PACRA Maintains Stability Rating of MCB DCF Fixed Return Fund II

MCB DCF Fixed Return Fund II (or the "Fund") is classified under a moderate risk profile. The objective of the Fund is to provide promised fixed return to the Unit Holders by investing in Fixed Income Securities. As of December 2024, The Fund reported Assets Under Management (AUM) of PKR 6,082 million. In terms of asset class, the Fund’s portfolio remained highly concentrated in sovereign exposure, with approximately 99.66% allocated to Treasury Bills, and the remaining 0.26% in placements with banks and 0.06 in others. From a credit quality perspective, the Fund’s exposure was primarily to high-grade instruments, with approximately 99.66% of assets invested in Government rated, 0.28% in AAA-rated securities, and a minimal 0.06% allocated to other instruments. The Fund’s Weighted Average Maturity (WAM) stood at 1,137 days as of end-December 2024, in line with its fixed-term mandate. With over 99% exposure to GoP-rated Shariah-compliant instruments, the credit risk profile remains conservative.
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 December 2024, 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 robust governance, objective decision-making, and alignment with regulatory best practices. The Company’s assets under management (AUM) have grown significantly, reaching approximately PKR 588 Billion as of December 2024, reflecting its strong market presence and consistent growth in Pakistan’s asset management industry.