PACRA Maintains Stability Rating of Pakistan Income Fund

Pakistan Income Fund (“PIF” or “the Fund”) is categorized under a medium-risk profile, pursuing an active investment strategy within the debt and fixed income universe to enhance returns while maintaining relative portfolio stability. The Fund aims to generate competitive income through diversified exposure to sovereign securities, corporate debt instruments, and money market placements while ensuring adequate liquidity. As of Dec’25, the Fund’s Assets Under Management (AUM) stood at PKR 2,319mln, compared to PKR 1,363mln as of Jun'25 (last review), reflecting a notable increase in the Fund’s size during the review period and indicating improved investor participation. In terms of asset allocation, the portfolio remained diversified with ~23% deployed in cash, ~21% in spread transactions, ~19% in Pakistan Investment Bonds (PIBs), ~15% in Treasury Bills, and ~15% in TFCs/Sukuks, while the remaining balance was invested in other instruments. This allocation reflects a balanced approach between liquidity management and yield optimization. From a credit quality perspective, approximately ~43% of the portfolio was invested in Government Securities and AAA rated instruments, followed by ~22% in AA+ rated avenues and ~7% in AA rated securities, with the remainder in other categories. This composition indicates a generally sound credit profile while allowing selective exposure to lower-rated instruments to capture incremental yield. As of Dec’25, the Fund’s Weighted Average Maturity (WAM) stood at 500 days, indicating moderate duration exposure and sensitivity to movements in interest rates, consistent with the Fund’s income-oriented investment strategy. The unit holding pattern reflects moderate investor concentration, with the top 10 investors accounting for ~40% of the Fund’s AUM, while provident funds represent ~7%, suggesting manageable redemption risk. In terms of performance, the Fund reported a year-to-date annualized return of 10.53% as of Dec’25, which remained broadly in line with the benchmark return of 10.54%, reflecting performance consistent with the Fund’s investment positioning and prevailing market dynamics.
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.