The Pakistan Credit Rating Agency Limited
27-Jun-19
Analyst
Shahzaib Khalid
shahzaib.khalid@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
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PACRA Maintains Stability Rating of Pakistan Income Enhancement Fund
| Rating Type | Stability Rating | |
|
Current (27-Jun-19 ) |
Previous (28-Dec-18 ) |
|
| Action | Maintain | Maintain |
| Long Term | A+(f) | A+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The rating reflects stable credit quality and liquidity profile of the fund emanating from the portfolio composition of the fund. At end Dec-18, the fund's exposure with cash and TFCs was ~47% and ~51% respectively. The net assets as cash are placed in banks having credit rating of minimum 'A-'. The remaining assets of the fund were invested with good quality TFCs rated 'AA-' and above. The unit holding pattern of the fund is well diversified with top ten investors accounting for ~34% of the fund's assets at end Dec-18.
Going forward, the management of the fund intends to maintain exposure towards cash, TFCs, government securities and other fixed income securities. The rating of the fund remains contingent upon managing the credit quality of the fund and impact of volatility in prices of assets.
About
the Entity
MCB Arif Habib Savings and Investments Limited (MCBAH), incorporated in August 2000 and listed on the Pakistan Stock Exchange, is a major player in the mutual fund industry of Pakistan. In June 2011, MCB Asset Management Company was merged into Arif Habib Investments. The objective was to achieve synergies in asset management business and access a wider distribution network.
The Company's Board has seven members. Two representatives are from MCB, two representatives from Arif Habib Group, two are independent and the CEO. Mian Muhammad Mansha, Chairman MCB, serves as the Chairman of the Board. Mr. Saqib Saleem is the CEO, having work experience of over thirteen years. With overall assets under management of ~PKR47 bln at end Feb’19, the Company is currently managing fifteen open-end funds and two voluntary pension funds.