PACRA Maintains Stability Rating of MCB Cash Management Optimizer

MCB Cash Management Optimizer (“MCB-CMO” or “the Fund”) is categorized under a low-risk profile, with the objective of providing unit holders competitive returns through investment in a high-quality, short-duration portfolio while maintaining strong liquidity. The Fund’s strategy focuses on capital preservation and efficient liquidity management, making it suitable for investors seeking minimal exposure to interest rate movements while maintaining ready access to funds. As of Dec’25, the Fund’s Assets Under Management (AUM) stood at PKR 105,604mln, compared to PKR 113,163mln as of Jun’25 (the last review), reflecting a modest contraction in fund size during the review period. In terms of asset allocation, approximately 88% of the portfolio was invested in cash placements, ~9% in Treasury Bills, and the remaining ~2% in other eligible instruments, highlighting the Fund’s strong emphasis on liquidity and capital preservation. From a credit quality perspective, ~82% of the Fund’s assets were invested in Government Securities and AAA rated instruments, while ~16% were placed in AA+ rated avenues, with the remainder allocated to other exposures. This credit profile reflects the Fund’s adherence to a conservative investment approach consistent with its low-risk mandate. The Fund’s Weighted Average Maturity (WAM) stood at 4 days as of Dec’25, indicating very limited sensitivity to interest rate and credit risk movements and supporting the Fund’s strong liquidity position. Meanwhile, the unit holding pattern indicates moderate concentration, with the top 10 investors accounting for ~45% of the Fund’s total holdings, thereby exposing the Fund to moderate redemption risk; however, the Fund’s highly liquid asset allocation and very short WAM profile provide adequate comfort regarding its ability to meet potential redemption requirements. In terms of performance, the Fund reported an annualized year-to-date return of 9.96% as of Dec’25, compared to the benchmark return of 10.66%, broadly reflecting the Fund’s conservative asset allocation and short-duration investment strategy.
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) 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 Dec 2025, 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 strong governance, objective decision-making, and alignment with regulatory best practices. The Company’s assets under management (AUM) have grown significantly, reaching approximately PKR 429 Billion as of December 2025, reflecting its strong market presence and consistent growth in Pakistan’s asset management industry.