Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Stability Rating of MCB Cash Management Optimizer
Rating Type | Stability Rating | |
Current (08-Sep-23 ) |
Previous (09-Mar-23 ) |
|
Action | Maintain | Maintain |
Long Term | AA+(f) | AA+(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
MCB Cash Management Optimizer ( or the "Fund") reflects the Fund's low-risk profile. The investment objective of the Fund is to provide unit-holders a competitive returns from a low-risk portfolio of short-duration assets while maintaining high liquidity. At the end of Jun'23, the Fund had allocated ~76.7% in T Bills, ~22.8% of cash in banks rated AA and above while the remaining ~0.5% was invested in other avenues. The Fund remained compliant with the criteria of assigned rating; minimum 50% of assets in Govt. Securities/ AAA and maximum 25% in AA rated avenues. The WAM and duration of the Fund stood at 80 days at the end Jun'23; limiting the exposure to credit risk and interest rate risk. As of Jun'23, the unit holding pattern of the Fund was ~44.20% representing top ten investor concentration; limiting the exposure to redemption pressure.
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 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.