PACRA Affirms Stability Rating for MCB DCF Income Fund

Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has affirmed the stability rating of the MCB DCF Income Fund, classifying it under a medium risk profile. The Fund, known for its strategy of delivering fixed income returns, reported significant Assets Under Management (AUM) of PKR 20.76 billion as of June 2025, underscoring its substantial role within Pakistan’s fixed income market.

The Fund’s asset allocation reveals a strategic diversification aimed at optimizing returns while ensuring capital security and liquidity. Notably, 43.6% of the net assets are invested in Pakistan Investment Bonds (PIBs), followed by 17.1% in Cash Placements, and 17% in Government of Pakistan Ijara Sukuk. Additionally, the portfolio includes 13.8% in Treasury Bills (T-Bills), 4.3% in Term Finance Certificates/Sukuk, and 2.4% in government-backed or guaranteed securities. The remaining 1.8% is invested in other instruments, including receivables.

In terms of credit quality, the Fund maintains a robust profile with 79.8% of its assets in Government Securities and AAA-rated instruments. A further 16.6% is allocated to AA-rated avenues, with minimal exposure to other investment-grade assets. This allocation strategy highlights the Fund’s focus on high credit quality while seeking yield optimization.

The weighted average maturity (WAM) of the Fund stands at 913 days, aligning with its medium risk profile and indicating moderate exposure to interest rate risk. PACRA notes that any significant changes in the Fund’s investment policy or compliance with rating criteria could impact its assigned rating in the future.

The affirmation of the stability rating reflects the Fund’s commitment to maintaining a balanced approach between risk and return, enhancing its appeal to investors seeking stable fixed income opportunities.