PACRA Maintains Asset Manager Rating of MCB Investment Management Limited

MCB Investment Management Limited ("MCB Funds" or the "AMC") is among the leading asset management companies in Pakistan. Its profile is supported by the strong association with MCB Bank Limited, a diversified product portfolio, an experienced management team, and a well-established retail and institutional distribution network. The overall industry AUM increased from ~PKR 3.7trln to ~PKR 4.3trln as at Jun'26, reflecting ~16% YoY growth. Within the industry, Shariah-compliant funds recorded stronger growth of 26.9%, compared with 7.7% growth in conventional funds. Against this backdrop, MCB Investments maintained its established market presence. MCB Funds' total AUM stood at approximately PKR 387bln as at Jun'26 (Jun'25: PKR 394bln), reflecting overall stability during the year. The AUM peaked at approximately PKR 429bln in Dec'25 before moderating by year-end, primarily due to changes in market conditions and investor asset allocation preferences. The AMC maintains a diversified portfolio of conventional and Shariah-compliant investment products across fixed-rate return, aggressive fixed income, income, money market, asset allocation, balanced, and equity strategies. This diversified product suite, supported by an established distribution network, strengthens the AMC's business profile and provides investors with exposure across multiple asset classes and investment horizons. As at Jun'26, the conventional-to-Shariah AUM mix stood at 67:33, while money market funds—primarily MCB Cash Management Optimizer and Investment Savings Plan I—accounted for approximately 38% of total AUM. The AMC’s business profile is further supported by continued expansion in its Separately Managed Accounts (SMA) portfolio, which grew by ~49% to ~PKR 150bln as at Jun-26 (Jun-25: ~PKR 101bln), reflecting deeper institutional penetration. The VPS franchise also continued to expand through corporate and government-sector onboarding, including the launch of pension funds in collaboration with the GoKp and the GoPb Pension Fund. Investor servicing has also been strengthened through enhanced digital capabilities. The AMC provides investors with a centralized digital platform for monitoring investments and executing transactions, while its iPay facility enables same-day redemption of up to PKR 1mln. Investors can also redeem up to 70% of their eligible investment value through the digital channel, enhancing accessibility, convenience, and responsiveness. The AMC’s financial profile remained stable during Jun'26. Management fee income stood at ~PKR 4.48bln as at Jun-26, compared with ~PKR 4.45bln in Jun-25, while profit after tax (PAT) remained broadly stable at ~PKR 1.77bln against ~PKR 1.75bln in the previous year. The equity base strengthened to ~PKR 4.5bln as at Jun-26 from ~PKR 3.2bln, providing a stronger capital cushion to support the AMC’s operations and future growth.
The rating is dependent upon the AMC’s ability to sustain its market share, maintain a diversified product portfolio, and uphold strong investment processes and control environment. Any sustained downturn in fund performance and/or significant loss in market share will impact the rating.

About the Entity
MCB Investment Management Limited (MCB Funds) is a Public Listed Company regulated by SECP. MCB Funds holds licenses for Asset Management, Investment Advisory, and Pension Fund Management. Incorporated in 2000 as Arif Habib Investment, it merged with MCB Asset Management in 2011 to enhance synergies and expand distribution. In April 2023, MCB Bank enhanced its shareholding in MCB Funds to 81.42% by acquiring a 30.09% stake from Arif Habib Corporation, which has now fully exited. Along with MCB Bank, Adamjee Insurance holds 7.6%, while the remaining ~11% is held by the general public. Supported by this strong ownership structure, the AMC serves both conventional and Shariah-compliant investors, managing a diversified product portfolio comprising 28 open-end funds, 6 Voluntary Pension Schemes (VPS), and 4 Employer Pension Funds, including pension funds established in collaboration with the GoKp and GoPb.