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Lahore, June 17, 2023 (PPI-OT): MCB-Arif Habib Savings and Investments Limited (“MCB-AH” or the “Company”) has recently launched Alhamra Cash Management Optimizer (“ALH CMOP” or the “Fund”) to further capture the growing market share in shariah compliant money market funds and to enhance diversification in its fund slate. Currently, the market share of the Fund in this category is 0.5%. ALH CMOP is a low risk open ended shariah compliant money market fund with objective to provide competitive rate of return by investing primarily in liquid Shariah compliant money market avenues. The ratings reflect the Fund’s moderate credit quality and high liquidity profile.
As per the investment policy, the Fund can invest only in AA and above rated avenues with maximum maturities up to 6-months. However, the weighted average time to maturity of the net assets shall not exceed 90-days. The current size of the Fund is PKR ~2bln while at the end of May’23, the exposure in cash at banks was 99.0% with AA rated Islamic Banks and 0.5% with a AAA rated Islamic bank.
The current asset allocation of the Fund depicts a weighted average time to maturity and duration of 01 days displaying very low credit risk and interest rate risk. The top ten investor concentration stood at ~74% at may’23, representing a high redemption pressure which the Fund is able to cope up owing to its superior liquidity profile.
Going forward, in accordance with the investment policy and assigned ratings, the Fund will increase exposure in government securities / AAA rated avenues to 50% and the remaining will be maintained in AA and AA+ rated avenues. Significant changes in investment policy or decline in diversification among investment avenues may impact the assigned rating.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com
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