PACRA Maintains Stability Rating of MCB DCF Income Fund

MCB DCF Income Fund ("the Fund") represents a low-risk fixed income solution designed to deliver superior returns through a balanced portfolio of government securities and high-quality debt instruments. The Fund's investment framework emphasizes capital preservation while optimizing yield through strategic allocation across authorized fixed income assets. As of December 2024, the Fund reported Assets Under Management (AUM) of PKR 22.7 billion, reflecting its substantial presence in Pakistan's fixed income market. In terms of asset class, 50% of the net assets were allocated to Treasury Bills, 31% to Pakistan Investment Bonds (PIBs), and 8% to bank deposits, with the remainder invested in other approved securities. From a credit quality perspective, 92% of assets invested in Government Securities and AAA rated instruments, complemented by 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 949 days as of December 2024, the Fund maintains moderate exposure to interest rate risk, though this is substantially mitigated by its predominant allocation to sovereign securities. The extended maturity profile enables the Fund to capture higher yields while its government security concentration provides default risk protection.
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 588 Billion as of December 2024, reflecting its strong market presence and consistent growth in Pakistan’s asset management industry.