PACRA Maintains Stability Rating of MCB DCF Income Fund

Pakistan DCF Income Fund ("MCB-DCFIF" or "the Fund") is classified under a medium risk profile. The Fund's objective is to deliver superior fixed income returns by investing in an optimal mix of authorized debt instruments while taking into account capital security and liquidity considerations. As of June 2025, the Fund reported Assets Under Management (AUM) of PKR 20.76 billion, reflecting its substantial presence in Pakistan's fixed income market. In terms of asset class, 43.6% of the net assets were allocated to PIBs, 17.1% as Cash Placements, 17% to GoP Ijara Sukuk, 13.8% in T-Bills, 4.3% in TFCs/Sukuk, 2.4% in Gov backed/Guaranteed Securities, while remaining 1.8% in others including receivables. From a credit quality perspective, 79.8% of assets invested in Government Securities and AAA rated instruments, complemented by 16.6% in AA rated avenues and minimal exposure to other investment-grade assets. This allocation underscores the Fund's commitment to maintaining high credit quality while pursuing yield optimization. With a weighted average maturity (WAM) of 913 days as of June 2025, the Fund maintains moderate exposure to interest rate risk, aligning with its medium risk 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 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.