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The Pakistan Credit Rating Agency Limited
Press Release

Date
06-May-20

Analyst
Afnan Iqbal
afnan.iqbal_old@pacra.com_old
+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 Alhamra Daily Dividend Fund

Rating Type Stability Rating
Current
(06-May-20 )
Previous
(24-Dec-19 )
Action Maintain Maintain
Long Term AA-(f) AA-(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

The rating reflects the strength of the fund's credit and interest rate risk profile, considerable holding of cash and bank balances reinforce the liquidity profile. At end Dec-19, 99% of fund's assets were placed with banks rated 'AAA' (86%) and 'AA' (13)% . The unit holding pattern of the fund is moderately concentrated with top ten investors representing ~30% of the fund's assets.
Going forward, the fund intends to maintain its asset allocation towards higher rated banks. Material changes in the fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.

About the Entity
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 eight-member board comprise the CEO and chairman. There are four non-executive directors, three independent directors and one executive director. The Chairman, Mr. Haroun Rashid replaced Mr. Mian Muhammad Mansha in Feb-20. Mr. Rashid has served at senior positions of several prestigious organisations. Mr. Saqib Saleem is the CEO, possessing relevant experience of more than a decade. With overall assets under management of ~PKR 58 bln at end Dec-19, the Company is currently managing fifteen open-end funds and two voluntary pension schemes. The assets under management of separately managed accounts (SMA) stood at~PKR 40 bln at end Dec-19.

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.