PACRA Maintains Stability Rating for MCB Pakistan Fixed Return Fund Amid Continued Investment in High-Quality Avenues

Islamabad: The Pakistan Credit Rating Agency Limited (PACRA) has upheld the stability rating of the MCB Pakistan Fixed Return Fund (MCB PFRP), recognizing its consistent investment in high-quality, low-risk avenues and robust credit quality.

According to The Pakistan Credit Rating Agency Limited announcement issued on 04 July 2024, the MCB PFRP, designed to offer fixed returns upon the maturity of its various allocation plans, operates under a low-risk profile. The fund primarily invests in AAA-rated government securities and other secure financial instruments. As of the end of March 2024, the fund's assets under management (AUM) stood at PKR 20,953 million. Notably, approximately 99.5% of the fund's allocations were invested in Treasury Bills, with the remainder placed in banks as deposits and other placements. The fund’s weighted average maturity (WAM) was 178 days, indicating moderate exposure to credit risk, while its duration was 184 days, suggesting a moderate exposure to interest rate risks. The concentration of investments among the top ten investors was about 87.38%, pointing to a potential high level of redemption pressure.