PACRA Maintains the Stability Rating of MCB Investment Savings Fund

MCB Investment Savings Fund ("MCB-ISF" or "the Fund") is categorized under a medium-risk profile, with the objective of generating competitive returns through investment in debt and fixed income instruments. As of Dec'25, the Fund's Assets Under Management (AUM) stood at PKR 32,755mln, compared to PKR 15,434mln as of Jun'25 (the last review), reflecting a substantial expansion of approximately PKR 17,321mln more than doubling in fund size over the review period indicative of strong and growing investor confidence in the Fund's investment proposition. In terms of asset allocation, approximately ~99% of the portfolio was held in cash, with the remainder deployed across other permissible instruments, reflecting a highly liquid portfolio stance. From a credit quality perspective, ~41% of the Fund's assets were invested in Government Securities and AAA rated instruments, with the remaining ~58% concentrated in AA+ rated exposures. This strong, high-quality portfolio composition reflects the Fund's conservative credit approach and provides a strong investment-grade anchor to the portfolio, with limited credit risk across the asset base. The Fund's Weighted Average Maturity (WAM) stood at 1 day as of Dec'25, reflecting an ultra-short duration posture and virtually zero sensitivity to interest rate movements. This maturity profile reinforces the Fund's strong liquidity position and its ability to reprice the portfolio rapidly in response to evolving monetary policy conditions a feature that is particularly relevant in the current rate-sensitive environment. In terms of performance, the Fund reported a one-year annualized return of 11.61% as of Dec'25, compared to a benchmark return of 11.63%, reflecting a marginal underperformance of approximately 2 basis points. This near-benchmark outcome is assessed as broadly consistent with the Fund's conservative portfolio positioning and ultra-short duration strategy during the review period, which, while constraining absolute yield, has effectively preserved capital and maintained strong liquidity throughout.
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.