AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has affirmed the stability rating of MCB Pakistan Sovereign Fund (MCB-PSF), a medium-risk profile fund dedicated to investments in government securities. As of June 2025, the fund’s assets under management (AUM) reached PKR 28.813 billion, positioning it as one of the country’s most significant sovereign fixed income vehicles.
MCB-PSF’s asset allocation strategy shows a significant focus on government securities, with 66.4% of net assets invested in Pakistan Investment Bonds (PIBs). Additionally, 15.6% of assets are in cash placements, 9.3% in Treasury Bills, and 6.5% in GoP Ijara Sukuk. The remaining 2.2% is invested in other categories, including receivables.
The fund’s credit quality is strong, with approximately 83% of its assets held in government securities and AAA-rated instruments. The remaining 14.4% is invested in AA-rated avenues, which provides the fund with substantial protection against credit risk. However, the portfolio is exposed to interest rate volatility due to its weighted average maturity of 876 days as of June 2025.
PACRA noted that any significant changes in MCB-PSF’s investment policy or deviations from the rating criteria could affect the fund’s stability rating. Despite potential interest rate risks, the fund’s near-sovereign asset concentration offers a buffer against credit uncertainties.