PACRA Upgrades the Stability Rating of Pakistan Income Fund

Pakistan Income Fund ("the Fund") represents a low-risk fixed income vehicle designed to deliver stable returns through a predominantly sovereign portfolio, while maintaining disciplined risk parameters. The Fund's investment strategy emphasizes capital preservation through high-quality debt instruments, positioning it as a core fixed income holding for conservative investors. As of December 2024, the Fund reported Assets Under Management (AUM) of PKR 2.8 billion, reflecting its focused presence in Pakistan's debt market. In terms of asset class, 68% of assets were allocated to Treasury Bills, 14% to Pakistan Investment Bonds (PIBs), and 12% to Term Finance Certificates/Sukuks, with residual investments in other approved securities. The Fund maintains exceptional credit quality metrics, with approximately 93% of assets invested in Government Securities and AAA rated instruments, complemented by 6% in AA rated avenues. This high-grade allocation provides substantial protection against credit risk, despite the Fund's intermediate-term maturity profile. With a weighted average maturity (WAM) of 657 days (approximately 1.8 years) as of December 2024, the Fund demonstrates moderate exposure to interest rate risk. However, this risk is substantially mitigated by the portfolio's pronounced tilt toward sovereign securities. The updated rating draws comfort from the Fund's disciplined investment strategy, high quality credit exposure, and sound risk management framework.
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.