Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Stability Rating of Pakistan Cash Management Fund
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 | - | - |
Pakistan Cash Management Fund ( or the "Fund") reflects the Fund's low-risk profile. The investment objective of the Fund is to deliver regular income and provide high level of liquidity primarily from short duration government securities investment. The credit quality of the Fund was ~77.3% in Govt Sec./AAA whereas 15.4% in double AA+, ~4.2% in A1+, ~2.1% in A1 and ~1.0% in others. The AUMs of the Fund stood at PKR 7,572mln at the end of Dec’23. The Fund had allocated ~90.0% in Banks, , ~0.2% in Gop Ijara Sukuk,~6.2% in Short-term Sukuk,~2.6% in TDRs and ~1.0% in others. The WAM of the Fund stood at 10 days, limiting the credit risk of the fund. The Duration of the Fund was 7 days at the end Dec’23, limiting the Fund to low interest rate risk.
Going forward, the Fund may shift its asset allocation in moderate tenor government securities, subject to economic and market expectations. 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