Muhammad Azmat Shaheen
PACRA Maintains Stability Rating of MCB DCF Income Fund
|Rating Type||Stability Rating|
MCB DCF Income Fund (the "Fund") is a medium-risk profile fund. At end Jun'22, the Fund maintained an exposure of 67.6% towards Banks while 18.8% of its net assets in Government securities; whereas, 11.8% of exposure is with TFCs rated “A+” and higher. The Fund had weighted average maturity of 584 days mainly due to investments in PIBs and Sukuk. The duration of Fund stood at 66 days with low interest rate risk. Investor concentration stood at 27% showing low redemption pressure.
Going forward, following the investment policy and market circumstances, the Fund may increase exposure in banks, spread transactions and short-term government papers. 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).