Lahore, September 10, 2021 (PPI-OT):MCB Cash Management Optimizer (or the ‘Fund’) is low risk-profile fund. The assigned rating reflects the Fund’s strong credit and interest rate risk profile. The Fund’s good credit quality and sound liquidity profile emanate primarily from its mandate to invest in government securities and other low-duration avenues such as bank placement and ensuring low exposure to interest rate risk. At end-Jun’21 the WAM of the Fund was 1 day. While, around 99% of the Fund’s assets were allocated mainly to banks rated ‘AAA’. The duration of the fund stood at 1 day as at end-Jun’21. The Fund’s unit holding pattern is moderately concentrated with top 10 investors representing ~59% of the net assets which reflects a moderate level of redemption pressure.

Going forward, in accordance with the investment policy and market expectations the Fund may shift 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.

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