PACRA Maintains Stability Rating of MCB DCF Income Fund
|Rating Type||Stability Rating|
MCB DCF Income Fund (or the ‘Fund’) is a medium risk-profile fund. The rating reflects the adequate strength of the Fund's credit and interest rate risk profile. At end-Jun'21, ~52% of Fund's assets were invested with banks primarily rated 'AAA'. The Fund had placed ~28% of its portfolio into government securities. It had invested the remaining ~10% of the net assets into TFCs rated ‘A+’ and above. The weighted average maturity of the Fund is 1.5 years, which is in line with the investment policy. The unit holding pattern of the Fund is moderately concentrated with top ten investors representing ~29% of the Fund's assets, which exposes the Fund to a low level of 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 was incorporated in 2000 as Arif Habib Investments Limited and subsequently merged with MCB Asset Management Company in 2011, to achieve synergies in asset management business and access to a wider distribution network. Pursuant to the merger, the name of the Company was changed to MCB-Arif Habib Savings and Investments Limited. 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. 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 97,679mln at end-Jun'21 (Dec'20: ~PKR.82,721mln).