The Pakistan Credit Rating Agency Limited
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Madiha Sohail

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PACRA Maintains Stability Rating of Alhamra Daily Dividend Fund

Rating Type Stability Rating
(09-Mar-23 )
(09-Sep-22 )
Action Maintain Maintain
Long Term AA-(f) AA-(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

Alhamra Daily Dividend Fund (or the “Fund) is a medium risk-profile fund. The assigned rating reflects the adequate strength of the Fund's credit and interest rate risk profile. Furthermore, considerable holding of cash and bank balances reinforce the liquidity profile. At the end-Dec'22, 65% of the portfolio was invested in Cash at Banks, 21.4% in Shariah Compliant Deposits and Placements, 10.4% in Sukuk rated AA and remaining 3.2% was invested in other receivables. At the end-Dec’22, the weighted average maturity of the Fund was 41 days and duration of 40 days representing low credit rate risks and interest rate risks respectively. The unit holding pattern of the Fund is moderately concentrated with the top ten investors representing 29.6% of the Fund's assets, representing low redemption pressures.
Going forward, the Fund may maintain its asset allocation towards banks depending on economic and market expectations and the Fund may diversify the allocation among different shariah compliant instruments. 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 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 160bln at end-Dec'22 (Jun'22: PKR 122bln).

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.