The financial experts of MCB–Arif Habib Savings and Investments Limited (MCB-AH) mentioned in the report that during the quarter closed September 30, 2018, the company registered a gross income of Rs. 191.374 million (September 2017: 159.716 million), which includes management/investment advisory fee and other operating income. After accounting for administrative, operating & financial expenses and income sharing of Rs. 138.881 million (September 2017: 123.092 million), the company earned a profit before tax (PBT) of Rs. 52.493 million (September 2017: 58.349 million).
The financial experts of the company also calculated that the net profit after tax (PAT) for the period amounts to Rs. 32.236 million, as against to net profit of Rs. 40.827 million for the same period closed September 30, 2017. The company is cataloged on the Pakistan Stock Exchange. It is regulated by Securities and Exchange Commission of Pakistan (SECP) under the Non-Banking Finance Companies Rules, 2003, Non-Banking Finance Company and Notified Entities Regulations 2008 and Voluntary Pension System Rules 2005 and holds licenses for Asset Management, Investment Advisory and Pension Fund Management Company, managing Open-end Mutual Fund and Pension Funds.
| Pakistan income fund | ||
|---|---|---|
| Year | Fund (%) | Benchmark (%) |
| 2018 | 4.77 | 5.9 |
| 2017 | 6.9 | 6.05 |
| 2016 | 6.14 | 6.97 |
| 2015 | 11.31 | 10.43 |
| 2014 | 8.13 | 9.33 |
| Source: MCB-ARIF HABIB | ||
The company officials also stated that MCB-Arif Habib Savings and Investments Limited is a member of the Mutual Funds Association of Pakistan (MUFAP). MCB-AH is an Asset Management Company which is a subsidiary of MCB Bank Limited and manages investments of over Rs. 81.2 Billion (as of September, 2018) on behalf of over 75,000 customers. They also urged that it manages 15 mutual funds, 2 voluntary pension schemes and different Investments Plans in its product portfolio to meet the investment needs of its growing clientele.
MCB-AH was conceived in the year 2000 and in March 2002, two of its flagship Funds, the MCB Pakistan Stock Market Fund (MCB-PSM) and the Pakistan Income Fund (PIF) were introduced.
| MCB-DCF Income Fund | ||
|---|---|---|
| Year | Fund (%) | Benchmark (%) |
| 2018 | 4.62 | 6.22 |
| 2017 | 6.5 | 6.09 |
| 2016 | 6.23 | 7.01 |
| 2015 | 12.64 | 10.57 |
| 2014 | 10.79 | 9.57 |
| Source: MCB-ARIF HABIB | ||
Mcb Bank Limited
MCB Bank Limited, is one of the oldest and leading banks in Pakistan. The Bank was nationalized along with other private banks in 1974 as part of Government of Pakistan’s economic reform movement and was later privatized in 1991. MCB Bank has journeyed an extraordinary tenure of more than half a century of competitively edged and well positioned heights of success by deploying quality banking, heads on technological developments, professionally leading management and prudent and ethical work methodologies.
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The Bank in one of the largest foreign banks in Sri Lanka; the first bank in Pakistan to introduce Global Depository Receipts (GDR) in 2006 and has strategic foreign partnership with Maybank of Malaysia, which holds 20 percent shares in the bank through its wholly-owned subsidiary Mayban International Trust (Labuan) Berhad since 2008.
| Pakistan Capital Market Fund | ||
|---|---|---|
| Fund (%) | Benchmark (%) | |
| 2018 | -3.21 | -4.32 |
| 2017 | 25.36 | 19.62 |
| 2016 | 5.17 | 8.89 |
| 2015 | 31.11 | 13.92 |
| 2014 | 26.1 | 27.12 |
| Source: MCB-ARIF HABIB | ||
Arif Habib Corporation
Arif Habib Corporation Limited (AHCL) is the holding company of one of the major business groups of Pakistan. AHCL has a diversified portfolio across sectors counting Chemical and Fertilizers, Financial Services, Construction Materials, Industrial Metals and others. The corporation aims to seek opportunities internationally also. AHCL has started to leverage its core competences and presently has invested in an equity brokerage house in Sri Lanka and has acquired membership of a multi commodity exchange in UAE. The management of the corporation has over time, won several prestigious national and regional awards in recognition of its consistently strong financial performance, sound corporate governance practices and transparent comprehensive financial reporting through its reliable and experienced management team.
Mutual Fund Industry Review
The experts stated that the net assets of the open end mutual fund industry reached at approximately Rs. 577 billion at the end of first quarter of 2018-19. Monetary tightening by the government resulted in a rise in interest rates, bringing flows to the money market funds. Size of Money Market (Islamic/Conventional), Fund of Funds (Islamic/Conventional) and Conventional Equities increased, while assets under management of all other categories declined during the period under review as against to Financial Year 2017-18.
In terms of the segment share, equity and equity related funds continued to be the leader with a share of almost 60 percent, followed by Money Market funds with a share of 25 percent and Income funds having a share of 15 percent as at the end of first quarter of 2018-19. The Net Assets of Pension Funds reached at approximately Rs. 26 billion during the period under review. The size of both Conventional and Shariah-compliant funds declined by almost 4 percent and 0.1 percent respectively. Amongst sub-categories, size of Debt and Equity funds decreased while those of Money Market funds increased.