PACRA Maintains Stability Rating of Pakistan Income Enhancement Fund

Pakistan Income Enhancement Fund ("PIEF" or "the Fund") is classified under a medium risk profile. The stated objective of PIEF is to deliver returns from an aggressive investment strategy in the debt and fixed income market. As of June 2025, the Fund reported Assets Under Management (AUM) of PKR 1,072 million, reflecting its moderate presence within the fixed income fund universe. In terms of asset class, 70.8% of assets were allocated to Cash Placements, 14.9% to GoP Ijara Sukuk, 7.1% to TFCs/Sukuk, 6.2% to others including receivables, and the remaining 0.7% in T-Bills. The portfolio composition indicates a relatively liquid stance, supported by a notable share in sovereign and near-sovereign exposures. In terms of credit quality, the Fund’s investments were predominantly in high-grade instruments, with 62.3% in AA+, 21.3% in Gov/AAA+, 6.2% in NR, 3.3% in AA-, 1.7% in AA, and a small portion (0.1%) in A+ and A- rated instruments and securities respectively. The Weighted Average Maturity (WAM) of the Fund stood at 320 days as of June 2025, indicating a moderately extended duration profile consistent with its return-seeking strategy, while still within the parameters of a medium-risk mandate.
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 ratings.

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 393 Billion as of June 2025, reflecting its strong market presence and consistent growth in Pakistan’s asset management industry.