PACRA Maintains Stability Rating of MCB Pakistan Fixed Return Fund

MCB Pakistan Fixed Return Fund ("MCB PFRP" or the ‘Fund’) is a low risk-profile Fund. The duration of the Fund is perpetual; however, allocation plan(s) launched by MCBIM under this Fund may be perpetual or may have fixed maturity. The objective of the Fund is to provide an attractive fixed return at maturity of the Allocation Plans, by investing in Fixed Income Securities. The Fund is not directly offering its units to the investor, rather offering shall only be made through allocation Plans launched from time to time under the umbrella of this Fund.
Currently, MCB Pakistan Fixed Return Plan XIII, XVI, XVII, XVIII, XIX and XX are under the umbrella of the Fund. The plans will invest in authorized avenues to meet investment objectives, with the Management Company ensuring promised returns valid for investors staying invested until plan maturity. Investment avenues for the plans are Government securities, cash, money market placements, certificates of deposits and musharakas, and TDRs.
The AUM's of the Fund as of end Mar'24 was PKR 20,953mln. The Fund had strong credit quality with ~100% of placements in AAA rated avenues at the end of Mar’24. At the end of Mar’24, the Fund had allocated ~99.5% in T-Bills and ~0.5% in banks in the form of deposits and placements. The WAM of the Fund was 178 days at the end of Mar'24, representing moderate exposure to credit risk. The Duration of the Fund stood at 184 days at the period end Mar'24; representing moderate exposure to interest rate risk. The top 10 investors' concentration of the Fund, at the period end Mar'24 was ~87.38% exposing the Fund to very high level of redemption pressure.
Going forward, in accordance with the investment policy and assigned ratings, the Fund will invest in Government securities, AAA or AA rated avenues according to its authorized investments. Any material changes in the investment policy or the devised 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 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 201bln at end-Mar'24.