PACRA Maintains Stability Rating of PIML Income Fund(Formerly Primus Cash Fund)
|Rating Type||Stability Rating|
The objective of the fund is to generate consistent returns with minimal risk by investing primarily in Government Securities, cash and near cash instruments.
The rating incorporates the fund's good credit quality and sound liquidity profile, emanating from the fund's current portfolio mix. At the end of Jun-18, fund's exposure with banks was ~86% with the majority of exposure in 'A-' rated banks. The remaining ~9% assets of the fund were invested in TFCs/sukuks with the credit rating of 'A+' and above. The unit holding pattern of the fund is highly concentrated with top 10 investors representing ~61% of the fund's assets, (of which ~19% are owned investments) which exposes the fund to a low level of redemption pressure. The comfort can be drawn from the liquid nature of investments.
Going forward, the fund intends to increase its exposure towards short-term placements and cash at the bank. The remaining assets of the fund will be placed in short duration Government Securities/instruments. This practice is mainly done by the management to protect the fund from downside risk in case of an interest rate hike in upcoming monetary policies due to the current rising interest rate scenario.
AWT Investments Limited (Formerly: Primus Investment Management Limited) is a public unlisted company, incorporated in 2011. It is a Non-Banking Finance Company, licensed by the Securities and Exchange Commission of Pakistan to manage open and closed-end funds and Investment Advisory Services. The company is currently managing six open-end schemes with assets under management of ~PKR 2.2bln at end-Jun 2018. In the month of March 2017, Army Welfare Trust (AWT) acquired 70% shares of the company from Pak Brunei Investment Company Limited. On October 13, 2017, the Board of Directors of PBICL approved the disinvestment, remaining 30% shareholding in the company through the exercise of put option contained in shareholder’s agreement. The transaction was approved by the Commission on Mar 5, 2018, subject to completion of certain formalities. Subsequent to June 30, 2018, the remaining formalities were fulfilled and remaining shareholding of AWT Investments Limited was also transferred by PBICL to Army Welfare Trust.
The CEO, Mr. Salman Haider possesses over two decades of local and international experience in Investment management industry including almost 10 years on Wall Street in New York, USA. His experience on Wall Street included NASD licenses of series 7 and 63 along with working at reputable institutions within the investment management industry.