PACRA Maintains Stability Rating of MCB Cash Management Optimizer

MCB Cash Management Optimizer (or the ‘Fund’) is low risk-profile fund. The assigned rating reflects the Fund's strong credit and interest rate risk profile. The Fund's good credit quality and sound liquidity profile emanate primarily from its mandate to invest in government securities and other low-duration avenues such as bank placement and ensuring low exposure to interest rate risk. The fund size increased by 12% since Jun'21. According to rating critera, the fund should invest 50% of AUMs in 'AAA' rated avenues to maintain its assigned rating. At end Dec'21, the fund had allocated ~72% of its net assets in 'AAA' rated banks and government securities. At end-Dec’21. the WAM of the Fund was 44 days and duration of the Fund was within 45 days, both measures are in line with PACRA methodology and reflects enhanced capacity of the Fund to withstand any changes in economic conditions . The Fund's unit holding pattern is moderately concentrated with top 10 investors representing ~51% of the net assets.
Going forward, in accordance with the investment policy and market expectations the Fund may shift allocations towards shorter duration GoP securities and/or maintain the exposure in 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 Limited Savings and Investments Limited (MCB-AH or the "Company") is a public listed company, regulated by the SECP. MCB-AH holds licenses for Asset Management, Investment Advisory, and Pension Fund Management. MCB-AH caters to both conventional and Shariah-compliant clientele and is currently managing a diverse product slate of fifteen open-end funds and two voluntary pension schemes. MCB-AH 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 MCB-AH are MCB Bank Limited ~51%, Arif Habib Corporation Limited ~30%, 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. MCB-AH'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 (CIS & VPS) of MCB-AH increased to ~PKR 110,012mln at end-Dec'21 (Jun'21: ~PKR 97,679mln).