PACRA Maintains Stability Rating of Pakistan Cash Management Fund

Pakistan Cash Management Fund (“PCMF” 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 is centered on capital preservation and efficient cash management, making it suitable for investors seeking stability and ready liquidity. As of Dec’25, the Fund’s Assets Under Management (AUM) stood at PKR 7,329mln, compared to PKR 6,299mln as of Jun'25 (last review), reflecting a moderate increase in the Fund’s size during the review period. In terms of asset allocation, the portfolio remained predominantly concentrated in cash placements (~97%), followed by ~2% in commercial papers, with the remaining invested in other short-term instruments. The allocation highlights the Fund’s focus on maintaining a highly liquid portfolio while preserving capital. From a credit quality perspective, approximately ~97% of the assets were invested in AA+ rated instruments, ~2% in A1+, and ~0.1% in Government/AAA rated securities, indicating a strong credit profile with exposure primarily to high-quality counterparties. As of Dec’25, the Fund’s Weighted Average Maturity (WAM) stood at 1 day, reflecting minimal sensitivity to interest rate movements and ensuring a very high level of liquidity. The unit holding pattern remains highly concentrated, with the top 10 investors accounting for ~96% of the Fund’s AUM, indicating elevated redemption concentration risk. However, this risk is mitigated by the Fund’s extremely short WAM and the highly liquid nature of the underlying investments, which support the Fund’s ability to meet potential redemption pressures. In terms of performance, the Fund reported a year-to-date annualized return of 9.88% as of Dec’25, compared to the benchmark return of 10.66%, reflecting performance broadly aligned with prevailing market conditions and the Fund’s conservative 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.