Muhammad Azmat Shaheen
PACRA Maintains Stability Rating of Pakistan Cash Management Fund
|Rating Type||Stability Rating|
Pakistan Cash Management Fund or the "Fund" is a very low risk-profile fund. The rating reflects the Fund's good credit quality, interest rate risk and sound liquidity profile emanating primarily from its mandate to invest in government securities and other low duration avenues such as bank placement's and ensuring low exposure to interest rate risk. At end Jun'22, the weighted average time to maturity and duration of the Fund was 1 day limiting the exposure to credit risk and interest rate risk. At end-Jun’22, ~98% of Fund's assets were placed with banks rated 'AAA'. The Fund's unit holding pattern is moderately concentrated with top 10 investors representing ~62% of the net assets.
Going forward, the Fund may shift its asset allocation in low tenor government securities, subject to economic and market expectations. 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-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 eighteen 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 122bln at end-Jun'22 (Dec'21: PKR 110bln).