Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has affirmed the medium risk rating for MCB DCF Fixed Return Fund III, maintaining the stability rating for the investment fund. The Fund, designed to provide a fixed return to its Unit Holders, primarily invests in fixed income securities.

At the close of 2024, the Fund's Assets Under Management (AUM) amounted to PKR 5,172 million. The asset allocation reveals a heavy reliance on short-term sovereign instruments, with 99.6% of the assets invested in Treasury Bills. A small proportion, 0.3%, is placed with banks, while the remaining 0.1% is divided among other investment avenues.

In terms of credit quality, the Fund's portfolio is concentrated in high-grade exposures. Government-rated assets account for 99.6% of the portfolio, 0.3% is in AAA-rated instruments, and 0.1% is in other holdings. This allocation underscores the Fund's focus on maintaining a low credit risk profile.

The Fund's Weighted Average Maturity (WAM) was recorded at 237 days at the end of December 2024. This is in line with its capital preservation objective and reflects its low credit risk exposure.

PACRA noted that any significant changes in the Fund's investment policy or non-compliance with the rating criteria could impact the stability rating in the future.