PACRA Maintains Stability Rating of Alhamra Daily Dividend Fund
|Rating Type||Stability Rating|
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. Further, considerable holding of cash and bank balances reinforce the liquidity profile. At the end-Dec'21, ~97% of the Fund's assets were placed with banks including 94.7% with a bank rated 'AA-'. About 3% of Funds were invested in commercial papers rated 'AA'. At end-Dec'21, the weighted average maturity of the Fund was 4 days owing to significant bank placement. The duration of the Fund was 5 days as of end-Dec’21, limiting the Fund's exposure to interest rate risk. The unit holding pattern of the Fund is highly concentrated with the top ten investors representing ~64% of the Fund's assets; however, the highly liquid profile of the Fund is able to cope up with the redemption pressure.
Going forward, the Fund may maintain its asset allocation towards banks depending on economic and market expectations. Material changes in the Fund's asset allocation strategy, impacting its credit quality and/or average duration, 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 fifteen 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 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 110,012mln at end-Dec'21 (Jun'21: ~PKR 97,679mln).