Muhammad Azmat Shaheen
PACRA Maintains Stability Rating of Pakistan Income Enhancement Fund
|Rating Type||Stability Rating|
Pakistan Income Enhancement Fund or the "Fund" is a medium-risk profile fund. The assigned rating reflects the moderate strength of the Fund's credit and interest rate risk profile. At end Jun'22, the Fund had exposure of ~55% in banks rated A and above, 26.7% of net assets into government securities and 16.8% in TFCs rated A+ and higher. At end Jun'22, Weighted Average Maturity stood at 730 days. The duration of Fund stood at 161 days exposing the Fund to moderate interest rate risks. Investor concentration stood at ~40% with low redemption risk.
Going forward, the Fund may alter its allocation with banks and take a diversified exposure in T-Bills, and spread transactions keeping in view the market expectations. Material changes in the Fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.
MCB-Arif Habib Limited Savings and Investments Limited (MCB-AH or the "Company") is a Public Listed Company, regulated by the SECP. MCB-AH holds licenses for Asset Management, Investment Advisory, and Pension Fund Management. MCB-AH caters to both conventional and Shariah-compliant clientele and is currently managing a diverse product slate of eighteen open-end funds and two voluntary pension schemes. MCB-AH 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 MCB-AH are MCB Bank Limited ~51%, Arif Habib Corporation Limited ~30%, 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. MCB-AH'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 (CIS & VPS) of MCB-AH increased to PKR 122bln at end-Jun'22 (Dec'21: PKR 110bln).