PACRA Maintains Stability Rating of MCB Pakistan Sovereign Fund
|Rating Type||Stability Rating|
The rating reflects the fund's strong credit quality and a sound liquidity profile emanating from the fund's policy to invest 70% of asset in a mix of short-term and long-term government securities on a weighted average basis with duration not more than 2 years. At end Dec-18, fund's exposure in T-Bills was 41% while 1% of the net assets were invested in PIBs. Most of the fund’s exposure was in 'AAA'' rated banks. The fund's exposure towards interest rate risk is reasonably within stated mandate. The unit holding pattern of the fund is concentrated, with top ten investors representing 85% of the fund's assets at end Dec-18.
Going forward, the rating remains dependent on maintaining at least 70% allocation towards government securities on a weighted average basis with portfolio duration not exceeding 2 years. PACRA would monitor compliance against agreed parameters on monthly average basis.
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 seven members. Two representatives are from MCB, two representatives from Arif Habib Group, two 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.