The Pakistan Credit Rating Agency Limited
08-Mar-24
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of MCB Cash Management Optimizer
| Rating Type | Stability Rating | |
|
Current (08-Mar-24 ) |
Previous (08-Sep-23 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA+(f) | AA+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
MCB Cash Management Optimizer (or the "Fund") reflects the Fund's low-risk profile. The investment objective of the Fund is to provide unitholders a competitive return from a low-risk portfolio of short duration assets while maintaining high liquidity. The credit quality of the Fund was ~26.2% in AAA/Govt Sec, ~47.5% in AA+, and ~25% in AA and ~1.3% in non-rated avenues. The Fund had allocated ~72.4% in Banks, 21.2% in T- Bills, ~5.1% in TDRs whereas, remaining was invested in Others. The AUMs of the Fund stood at PKR 29,386mln at the end of Dec’23. The WAM of the Fund stood at 28 days, keeping the Fund to low credit. The duration of the Fund stood at 29 days at end of Dec'23, keeping the fund to low interest rate risk. The top 10 investor concentration stood at 38.24 at end of Dec'23, keeping the redemption pressure low.
Going forward, in accordance with the investment policy and market expectations the Fund may keep allocations towards shorter duration GoP securities and/or maintain the exposure in higher-rated banks. Material changes in the Fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.
About
the Entity
MCB Investment Management Limited (MCBIM or the "Company") is a Public Listed Company, regulated by the SECP. MCBIM holds licenses for Asset Management, Investment Advisory, and Pension Fund Management. MCBIM caters to both conventional and Shariah-compliant clientele and is currently managing a diverse product slate of nineteen open-end funds and four voluntary pension schemes. MCBIM is also managing one of the largest AUMs under the SMA segment and holds a significant position in the investment advisory domain.
The major shareholders of MCBIM are MCB Bank Limited ~81.42%, and Adamjee Insurance Company Limited ~7.59%. The general public holds the remaining ~11% of the shares. Mr. Khawaja Khalil Shah is the CEO of the company. There are four non-executive directors, three directors are independent and one CEO. The AUMs of MCBIM stood at PKR 164bln at end-Dec'23.