Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the stability rating of the MCB DCF Income Fund, recognizing its balanced investment approach. The Fund, which seeks to offer superior fixed income returns, has maintained a substantial allocation in high-grade securities and government bonds, reflecting its medium risk profile.

According to The Pakistan Credit Rating Agency Limited, “The MCB DCF Income Fund has consistently invested in a diversified portfolio comprising mainly AAA or government rated securities, which represent approximately 85.8% of its credit quality. Other investments include T-Bills, Pakistan Investment Bonds (PIBs), and government-backed securities, aligning with its objective of capital security and liquidity.” The Fund’s assets under management stood at PKR 16,312 million as of the end of June 2024, with a weighted average maturity (WAM) of 949 days, which indicates a high credit risk due to the duration of government securities holdings.

The stability of the Fund’s rating hinges on any significant changes in its investment policy or the rating criteria used, which could impact future assessments. The current investor concentration within the top 10 investors remains at 57%, suggesting moderate redemption pressure.