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 Dec'22, largely the portfolio was invested in Government Sukuk/Securities of 77.6%, 18.4% in TFCs/Sukuks, 2.4% in Cash at Banks, while remaining was invested in others. The Fund had weighted average maturity of 1.8 years mainly due to investments in PIBs and T-bills. The Duration of the Fund stood at 55 days, depicting low interest rate risks. Investor concentration stood at 25.3% 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 160bln at end-Dec'22 (Jun'22: PKR 122bln).