The Pakistan Credit Rating Agency Limited
01-Sep-23
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of Alhamra Islamic Money Market Fund
| Rating Type | Stability Rating | |
|
Current (01-Sep-23 ) |
Previous (02-Mar-23 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA+(f) | AA+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Alhamra Islamic Money Market Fund (the "Fund") reflects the Fund's low-risk profile. The investment objective of the Fund is to provide a reasonable rate of return with a maximum possible capital preservation by investing primarily in liquid Shariah Compliant money market securities. As of Jun'23, the Fund had allocated ~74.5% cash in banks rated AA and above. Moreover, the Fund had allocated ~21.72% as placements within banks rated AA+ and above and ~2.3% in Sukuk while remaining ~1.6% was invested in other avenues at the end of Jun'23. The WAM of the Fund stood at 12 days at the period ended Jun'23; limiting the exposure to credit risk. The duration of the Fund was 15 days at the end of Jun’23. The unit holding pattern of the Fund was ~65.47% representing top ten investor concentration; limiting the exposure to redemption pressure.
Going forward, the Fund will invest in accordance with its authorized investment policy and maintain its exposure in Shariah Compliant instruments, however the allocations will be diversified appropriately. Material changes in the Fund's asset allocation strategy, impacting it's credit quality and/or exposure to interest rate risk, would affect the rating
About
the Entity
MCB Investment Management Limited (Formerly: MCB-Arif Habib Savings and Investments Limited) (MCBIM or the "Company") is a Public Listed Company, regulated by the SECP. MCBIM holds licenses for Asset Management, Investment Advisory, and Pension Fund Management. MCBIM caters to both conventional and Shariah-compliant clientele and is currently managing a diverse product slate of nineteen open-end funds and two voluntary pension schemes. MCBIM 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 MCBIM are MCB Bank Limited ~81%, 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. MCBIM'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 of MCBIM stood at PKR 153bln at end-Jun'23.