Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has upheld the stability rating of MCB Pakistan Fixed Return Fund (MCB PFRF), managed by MCB Investment Management Limited. The Fund, known for its perpetual-duration and moderate risk-profile, aims to deliver fixed returns primarily through high-credit-quality Fixed Income Securities.

MCB PFRF operates through structured Allocation Plans, exclusively offering exposure to investors via plans such as Pakistan Fixed Return Plan 22, 23, and 24. These plans, active as of March 2025, are structured to assure capital preservation and fixed returns, contingent upon investors maintaining their positions until maturity.

The Fund invests predominantly in Government of Pakistan Treasury Bills and liquid cash equivalents, with approximately 99.9% of its assets in sovereign-backed securities, ensuring a strong credit risk profile. It maintains a 100% allocation to AAA-rated, government-backed securities, emphasizing its defensive strategy and minimizing default risk.

As of end-March 2025, MCB PFRF reported a Weighted Average Maturity (WAM) of 114 days, reflecting moderate sensitivity to interest rate changes. This aligns with its short-to-medium duration strategy, balancing yield optimization with controlled risk exposure.

PACRA's rating decision underscores the importance of the Fund's strategic asset allocation in maintaining its credit quality and managing interest rate risk. The stability rating remains subject to any significant changes in these strategies.