The Pakistan Credit Rating Agency Limited
Press Release


Madiha Sohail

Applicable Criteria

Related Research

This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Stability Rating of MCB Cash Management Optimizer

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 - -

MCB Cash Management Optimizer or the "Fund" is a low-risk profile fund. At end-Dec’22, largely the portfolio was invested in Government Securities of 56.4%, 29.9% in Banks, 7.2% in Term Deposit Receipts, 5.6% in Banks and DFIs Placement while remaining was invested in others. The Weighted Average to Maturity and the Duration of the fund was 26 days at end of Dec'22, limiting the exposure to credit risks and interest rate risks. The Fund remained compliant with assigned rating criteria and its stated investment policy. The investor concentration stood at 50.3% at end Dec'22 imposing a moderate redemption risk.
Going forward, in accordance with the investment policy and market expectations the Fund may keep 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 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.