PACRA Maintains Stability Rating of MCB Pakistan Sovereign Fund
|Rating Type||Stability Rating|
The fund's mandate is to generate a reasonable return by primarily investing in bonds and short-term debt securities issued by Government of Pakistan (GoP).
The rating reflects the fund's strong credit quality and a sound liquidity profile emanating from the fund's policy to invest 70% of asset in a mix of short-term and long-term government securities on a weighted average basis with a duration not more than 2 years. At end Dec-17, the fund's exposure in T-Bills was 41% while 2% of the net assets were invested in PIBs. Most of the fund’s exposure was in 'AA+' rated banks. The fund's exposure towards interest rate risk is reasonably within the stated mandate. The unit holding pattern of the fund is moderately concentrated, with top10 investors representing 52% of the fund's assets.
Going forward, the rating remains dependent on maintaining at least 70% allocation towards government securities on a weighted average basis with portfolio duration not exceeding 2 years. PACRA would monitor compliance against agreed parameters on the monthly average basis.
MCB Arif Habib Savings & 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. During Jun11, MCB Asset Management Company was merged into Arif Habib Investments. The objective was to achieve synergies in the asset management business and access a wider distribution network.
Company’s eight members BoD, two representatives from MCB, two representatives from Arif Habib Group, CEO and three are independent. Mian Muhammad Mansha, Chairman MCB, serves as the Chairman on the board. Mr. Saqib Saleem is the CEO, having working experience of over thirteen years. With overall assets under management of ~ PKR 53 billion, the company is currently managing sixteen open-end funds and two voluntary pension funds.