PACRA Assigns Initial Stability Rating to MCB DCF Fixed Return Fund III

MCB DCF Fixed Return Fund III ("MCB DCFFRF‐III" or the "Fund") is a moderate risk profile Fund. The objective of the Fund is to provide a promised fixed return to Unit Holders by investing in fixed income securities. The Fund’s AUMs as of the end of Jul'24 were PKR 907mln. The Fund’s credit quality is very good and is in line with the assigned rating. As of the end of Jul'24, the Fund's investment was ~99.9% in government securities/AAA-rated avenues, with the remaining invested in other categories. At the end of Jul'24, most of the investment was held in T‐Bills (99.8%), followed by cash (~0.1%), with the remainder in other avenues. The WAM of the Fund stood at 342 days at the end of Jul'24, indicating a higher exposure to credit risk. The Duration of the Fund stood at 342 days at the end of Jul'24, exposing the Fund to low 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 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 currently manages a diverse product slate of twenty-two open-end funds and four voluntary pension schemes. MCBIM also manages one of the largest AUMs in 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%), with the general public holding the remaining ~11% of the shares. Mr. Khawaja Khalil Shah is the CEO of the company. There are four non-executive directors, three of whom are independent, and one executive director (CEO). The AUMs of MCBIM stood at PKR 231bln at the end of Jul'24.