PACRA Maintains Stability Rating of MCB Pakistan Sovereign Fund

Pakistan Sovereign Fund ("MCB-PSF" or "the Fund") is classified under a medium risk profile. The objective of MCB-PSF is to deliver income primarily from investment in government securities. As of June 2025, the Fund reported Assets Under Management (AUM) of PKR 28.813 billion, establishing it as one of Pakistan's largest dedicated sovereign fixed income vehicles. In terms of asset class, 66.4% of the net assets were allocated to Pakistan Investment Bonds (PIBs), 15.6% as Cash Placements, 9.3% to Treasury Bills, and 6.5% to GoP Ijara Sukuk, with residual 2.2% in others including receivables. The Fund exhibits sound credit quality, with approximately 83% of assets invested in Government Securities and AAA rated instruments, complemented by 14.4% in AA rated avenues, while remaining in others. This near-sovereign concentration provides substantial protection against credit risk, though the portfolio remains exposed to interest rate volatility through its duration profile. With a weighted average maturity (WAM) of 876 days as of June 2025, the Fund maintains meaningful exposure to interest rate risk.
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 393 Billion as of June 2025, reflecting its strong market presence and consistent growth in Pakistan’s asset management industry.