Lahore, September 10, 2021 (PPI-OT):MCB DCF Income Fund (or the ‘Fund’) is a medium risk-profile fund. The rating reflects the adequate strength of the Fund’s credit and interest rate risk profile. At end-Jun’21, ~52% of Fund’s assets were invested with banks primarily rated ‘AAA’. The Fund had placed ~28% of its portfolio into government securities. It had invested the remaining ~10% of the net assets into TFCs rated ‘A+’ and above. The weighted average maturity of the Fund is 1.5 years, which is in line with the investment policy. The unit holding pattern of the Fund is moderately concentrated with top ten investors representing ~29% of the Fund’s assets, which exposes the Fund to a low level of redemption pressure.

Going forward, following the investment policy and market circumstances, the Fund may increase exposure in banks, spread transactions, and short-term government papers. Material changes in the Fund’s asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.

For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com