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The Pakistan Credit Rating Agency Limited
Press Release

Date
28-Dec-18

Analyst
Shahzaib Khalid
shahzaib.khalid@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Stability Rating of MCB Cash Management Optimizer Fund

Rating Type Stability Rating
Current
(28-Dec-18)
Previous
(30-Jun-18)
Action Maintain Upgrade
Long Term AA+(f) AA+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

Fund's investment objective is to provide unit-holders competitive returns from a low risk portfolio of short duration assets while maintaining high liquidity.

The rating reflects the fund's low risk profile emanating from its portfolio allocation towards low risk avenues. At end Jun-18, all of the funds assets were invested in cash (~100%) with banks rated AAA and AA+. The exposure with AAA banks was 95%, whereas, exposure with 'AA+' rated banks was ~5%. The minimal duration of the fund depicts that the fund is less susceptible to interest rate movements. The unit holding pattern of the fund emanates moderate liquidity risk as top ten investors represent ~56% of the fund's assets.

Going forward, the fund intends to maintain exposure in government securities and cash balances. The rating remains dependent on maintaining exposure with high credit quality instruments having credit ratings of 'AA' and above.

About the Entity
MCB Arif Habib Savings and Investments Limited was incorporated in August 2000 and listed on the Karachi Stock Exchange. It is a major player in the mutual fund industry of Pakistan. During June'11, 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 board of directors comprises two representatives from MCB, two representatives from Arif Habib Group, one member is the CEO CEO and three are independent directors. Mian Muhammad Mansha, Chairman MCB, serves as the Chairman on the board. Mr. Saqib Saleem is the CEO, having work experience of over thirteen years. With overall assets under management of ~PKR 53bln at end Oct-18, the company is currently managing sixteen 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.