Analyst
Shahzaib Khalid
shahzaib.khalid@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Stability Rating of Alhamra Daily Dividend Fund
Rating Type | Stability Rating | |
Current (27-Jun-19 ) |
Previous (31-Dec-18 ) |
|
Action | Maintain | Initial |
Long Term | AA-(f) | AA-(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
The rating incorporates the fund's moderate credit quality and liquidity profile emanating from ~91% investments in banks as cash balances. At end Dec-18, ~85% of the fund's net assets were invested with investment avenues having A+ rating. Whilst ~11% of the fund's assets were invested with bank having AA- rating. The weighted average maturity of the fund and the duration was 5 days at end Dec-18 which implies low exposure to interest rate risk. The fund has well diversified unit holding pattern, with top ten investors representing ~39% of the fund size.
Going forward, the fund intends to maintain its exposure towards bank placements having minimum of A- rating. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remains critical for the rating.
About
the Entity
MCB Arif Habib Savings and Investments Limited (MCBAH), incorporated in August 2000 and listed on the Pakistan Stock Exchange, is a major player in the mutual fund industry of Pakistan. In June 2011, MCB Asset Management Company was merged into Arif Habib Investments. The objective was to achieve synergies in asset management business and access a wider distribution network.
The Company's Board has seven members. Two representatives are from MCB, two representatives from Arif Habib Group, two are independent and the CEO. Mian Muhammad Mansha, Chairman MCB, serves as the Chairman of the Board. Mr. Saqib Saleem is the CEO, having work experience of over thirteen years. With overall assets under management of ~PKR47 bln at end Feb’19, the Company is currently managing fifteen open-end funds and two voluntary pension funds.