PACRA Maintains Stability Rating of MCB Cash Management Optimizer
|Rating Type||Stability Rating|
The rating reflects the strength of the fund's credit and interest rate risk profile. The fund's good credit quality and sound liquidity profile emanates primarily from its mandate to invest in government securities and other low duration avenues such as bank placement's and ensuring low exposure to interest rate risk. At end-Jun'19, 93% of fund's assets were allocated to bank placements (80% in 'AAA' rated bank), whereas 7% to commercial papers. Average duration of the fund remained within 45 days. Fund's unit holding pattern is moderately concentrated with top 10 investors representing 54% of the net assets.
Going forward, the fund intends to diversify its asset allocation by taking exposure in government securities, while keeping the remaining fund's as bank placement's. Material changes in the fund's asset allocation strategy, impacting it's credit quality and/or exposure to interest rate risk, would affect the rating.
MCB Arif Habib Savings and Investments Limited ("The Company" or "MCBAH") a subsidiary of MCB Bank Limited, was incorporated in August 2000 and is listed on the Pakistan Stock Exchange. MCBAH is a major player in the mutual fund industry of Pakistan. In June 2011, MCBAH was merged into Arif Habib Corporation Limited, with the objective of achieving synergies in asset management business and access to a wider distribution network.
The Company's Board comprises eight members including the CEO and Chairman. Two representatives are from MCB Bank Limited, two representatives from Arif Habib Corporation Limited, and three independent directors. Mian Muhammad Mansha, Chairman MCB, serves as the Chairman of the Board. Mr. Saqib Saleem is the CEO, possessing relevant experience of over thirteen years. With overall assets under management of ~PKR 57bln at end Nov-19, the Company is currently managing fifteen open-end funds and two voluntary pension schemes. The assets under management of separately managed accounts (SMA) were ~PKR 38bln at end Nov-19.