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The Pakistan Credit Rating Agency Limited
Press Release

Date
08-Apr-19

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

Rating Type Asset Manager
Current
(08-Apr-19)
Previous
(08-Oct-18)
Action Maintain Maintain
AM Rating AM2++ AM2++
Outlook Positive Positive
Rating Watch - -

The rating takes strength from the company’s increasing retail market share due to its distinguished marketing. The management continues to focus on increasing the size of sales force and enhancing alternate distribution channels for improving the assets under management. The company has set high industry standards in establishing digital platforms leading to better investor services. The rating is duly supplemented by its established brand name, sponsors distribution network, experienced and stable management team, successful track record and diverse product slate. The rating also incorporates company’s association with two prominent business conglomerates of Pakistan, Nishat and Arif Habib Groups. Strong sponsor profile and corporate governance framework, well-structured investment process along with diligent investment risk management function bodes well for the company.
The rating is dependent on the company's ability to sustain its market standing. Increasing overall market share, 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 Pakistan Stock Exchange, is a major player in the mutual fund industry of Pakistan. In June 2011, 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's Board has eight members. 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 ~PKR47 bln at end Feb’19, the Company is currently managing fifteen open-end funds and two voluntary pension funds. The assets under management of separately managed accounts were ~PKR 35bln (including direct and fund of funds) at end Feb'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.