Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the stability rating of the MCB Government Securities Fund, a medium-risk income scheme primarily investing in government securities. The fund, aimed at investors seeking income generation through sovereign debt instruments, experienced a decline in its assets under management, reflecting investor reallocation trends and market dynamics.

According to the Pakistan Credit Rating Agency Limited, as of March 2026, the assets under management stood at PKR 22,232 million, down from PKR 48,562 million in September 2025. The fund's portfolio was predominantly composed of government securities, with 49% invested in Pakistan Investment Bonds and 36% in Treasury Bills. The remaining 13% was allocated to cash and equivalents. Approximately 97% of the fund's assets were in AAA-rated instruments, with the rest in AA+ rated avenues and other permissible investments.

The fund reported an annualized one-year return of negative 0.48% against a benchmark return of 10.83%, primarily due to mark-to-market losses on longer-duration government securities. The weighted average maturity of the fund was 584 days, indicating moderate sensitivity to interest rate changes. The fund's performance is expected to remain linked to movements in interest rates and sovereign debt market dynamics. Any significant changes in its investment policy or asset allocation could impact its rating.