The Pakistan Credit Rating Agency Limited
Press Release


Muhammad Usman

Applicable Criteria

Related Research

This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Stability Rating of PIML Income Fund(Formerly Primus Cash Fund)

Rating Type Stability Rating
Action Maintain Maintain
Long Term A+(f) A+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

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.

About the Entity
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.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.