PACRA Maintains Stability Rating of Pakistan Income Fund
|Rating Type||Stability Rating|
Pakistan Income Fund (or the ‘Fund’) is a medium risk-profile fund. The Fund aims to invest in the money market, debt, and fixed income instruments through active management. The rating reflects the moderate strength of the Fund's credit and interest rate risk profile. The Fund has largely allocated ~70% of its net assets to Govt. Securities, ~26% in TFCs/Sukuks, ~2.6% in Banks as of end-Dec’22, which reflects the strong credit rating of Fund's assets while remaining was invested in other Receivables. The WAM of the Fund was 1.9 years at end-Dec’22, however, the fund has majorly invested in Government Securities. The duration of fund stood at 58 days. The unit holding pattern of the Fund is low concentrated with top ten investors representing 32.4% of the Fund's assets, which subject the Fund to Low redemption pressure.
Going forward, the Fund may alter its allocation 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 160bln at end-Dec'22 (Jun'22: PKR 122bln).