The Pakistan Credit Rating Agency Limited
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Shahzaib Khalid

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PACRA Maintains Asset Manager Rating of MCB-Arif Habib Savings and Investments Limited

Rating Type Asset Manager
Action Maintain Maintain
AM Rating AM2++ AM2++
Outlook Positive Stable
Rating Watch - -

The rating reflects company’s strong performance in terms of returns and growth in its AUMs, which outpaced the benchmark in FY18. The rating is duly supplemented by its established brand name, sponsors distribution network, experienced management team, successful track record and diverse product slate. The company has relatively superior diversity in terms of investors’ profile and witnessed a significant growth in its SMA portfolio in FY18. The company has set high standards in establishing digital platforms leading to better customer service and strengthening the operating platform in terms of marketing, distribution, risk management and fund management. The company's well-structured investment process along with diligent investment risk management function adds value to the overall decision making process. The rating takes strength from the company’s association with two prominent business conglomerates of Pakistan, Nishat and Arif Habib Groups.

The rating is dependent on the company's ability to sustain its market standing. Increasing overall market share (AUMs), stability of the key human resource and consistent fund performance is important for the rating.

About the Entity
MCB Arif Habib Savings and Investments Limited (MCBAH), incorporated in August 2000 and listed on the Karachi Stock Exchange, is a major player in the mutual fund industry of Pakistan. In Jun11, 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 has eight members BoD. Two representatives are from MCB, two representatives from Arif Habib Group, three 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 ~PKR49 bln at end-June’18, the company is currently managing fifteen open-end funds and two voluntary pension funds.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.