PACRA Assigns Initial Stability Rating to MCB DCF Fixed Return Fund

MCB DCF Fixed Return Fund ("MCB DCFFRF" or the "Fund") is a moderate to medium risk profile Fund. The rating reflects the strength of the Fund's strong credit and interest rate risk profile. The Fund's good credit quality and sound liquidity profile emanate primarily from its mandate to invest in Government Securities and other low-risk avenues. The objective of the Fund is to provide promised fixed return to the Unit Holders by investing in Fixed Income Securities. AUM's of the Fund as of end May'24 was PKR 2,678mln. The credit quality of the Fund was ~99.9% in Government Securities or AAA rated avenues as at end May’24. At the end of the May’24, the Fund has allocated ~100% in T‐Bills. The WAM of the Fund was 151 days at the end of May'24, representing moderate exposure to credit risk. The Duration of the Fund stood at 138 days at the period end May'24; representing medium exposure to interest rate risk. At the end of May'24, the top 10 investor concentration of the Fund stood at ~89.85% exposing the Fund to very high redemption pressure. However, the redemption pressure is maintained by sufficient liquidity through investment in short-term government securities.
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 or the "Company") is a Public Listed Company, regulated by the SECP. MCBIM holds licenses for Asset Management, Investment Advisory, and Pension Fund Management. MCBIM caters to both conventional and Shariah-compliant clientele and is currently managing a diverse product slate of twenty two open-end funds and four voluntary pension schemes. MCBIM is also managing one of the largest AUMs under the SMA segment and holds a significant position in the investment advisory domain.
The major shareholders of MCBIM are MCB Bank Limited ~81.42%, and Adamjee Insurance Company Limited ~7.59%. The general public holds the remaining ~11% of the shares. Mr. Khawaja Khalil Shah is the CEO of the company. There are four non-executive directors, three directors are independent and one executive director (CEO). The AUMS of MCBIM stood at PKR 215bln at end-May'24.