PACRA Maintains Stability Rating of MCB Pakistan Sovereign Fund
|Rating Type||Stability Rating|
MCB Pakistan Sovereign Fund ( or the "Fund") reflects the Fund's medium-risk profile. The investment objective of the Fund is to deliver income primarily from investment in government securities. At the end of Jun'23, the Fund had allocated ~42.2% in PIBs, ~28.2% in T-Bills, ~26.4% of cash in banks majorly AA+ rated and above while the remaining ~3.2% was invested in other avenues. The Fund remained compliant with the criteria of assigned rating; maximum 25% in A+ rated avenues. The WAM of the Fund stood at 913 days at the period ended Jun'23; exposing the Fund to high credit risk. The duration of the Fund was 143 days at the end of Jun’23, exposing the Fund to interest rate risk. The unit holding pattern of the Fund was ~63.95% representing top ten investor concentration at the period ended Jun'23; limiting the exposure to redemption pressure.
Going forward, the Fund intends to maintain its asset allocation in government securities and banks, however, the allocations may be changed based on market circumstances. Material changes in the Fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.
MCB Investment Management Limited (Formerly: MCB-Arif Habib Savings and Investments Limited) (MCBIM or the "Company") is a Public Listed Company, regulated by the SECP. MCBIM holds licenses for Asset Management, Investment Advisory, and Pension Fund Management. MCBIM caters to both conventional and Shariah-compliant clientele and is currently managing a diverse product slate of nineteen open-end funds and two voluntary pension schemes. MCBIM is also managing one of the largest AUMs under the SMA segment and holds a significant position in the investment advisory domain.
The major shareholders of MCBIM are MCB Bank Limited ~81%, and Adamjee Insurance Company Limited ~8%. The general public holds the remaining ~11% of the shares. Mr. Saqib Saleem is the CEO of the company. MCBIM's control vests in an eight-member board of directors, including the CEO. There are four non-executive directors, while three directors are independent. The AUMs of MCBIM stood at PKR 153bln at end-Jun'23.