PACRA Maintains Stability Rating of PIML Income Fund(Formerly Primus Cash Fund)
|Rating Type||Stability Rating|
The rating incorporates the fund's strong credit quality and sound liquidity profile, emanating from the fund's current portfolio mix. At end-Dec-17, fund's exposure to banks was 76% with the majority of exposure in 'A-' rated banks. The remaining assets of the fund were invested with TFCs/ sukuks (i.e. 24%) with the credit rating of 'A+' and above. The unit holding pattern of the fund is highly concentrated with top10 investors representing 75% of the fund's assets, (of which around ~30% are owned investments) which exposes the fund to the 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 in bank placements. The remaining assets of the fund will be placed in debt instruments. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remain critical for the rating.
Primus Investment Management Limited (PIML) is a public unlisted company incorporated in 2011. PIML is a Non-Banking Finance Company, licensed by the Securities and Exchange Commission of Pakistan to manage open-end and closed-end funds and Investment Advisory. PIML is currently managing seven open-end schemes with assets under management of PKR 1.7bln at end-Dec 2017. In the month of March 2017, Army Welfare Trust (AWT) acquired 70% shares of the company from Pak Brunei Investment Company Limited.
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.