Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Stability Rating of Pakistan Income Fund
Rating Type | Stability Rating | |
Current (30-Aug-24 ) |
Previous (01-Mar-24 ) |
|
Action | Maintain | Maintain |
Long Term | AA-(f) | AA-(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
Pakistan Income Fund ( or the "Fund") is a medium risk profile Fund. The investment objective of the Fund is to deliver returns primarily from debt and fixed income investments without taking excessive risk. The AUMs of the Fund stood at PKR 1,899mln at the end of Jun'24. The credit quality of the Fund was ~79.1% in Govt/AAA rated avenues, ~9% in AA category, and remaining in others. The Fund had allocated ~35% in PIBs, ~19.3% in T-Bills, ~15.5% in TFC/Sukuk, ~13.2% in GOP Ijarah Sukuk and ~5.2% were invested in Banks whereas remaining was invested in others. The WAM of the Fund stood at 1314 days, exposing the high level of credit risk. The Duration of the Fund was 288 days at the end Jun'24, exposing the Fund to interest rate risk. The unit holding pattern of the Fund were ~4.45% representing top ten investor concentration; exposing the Fund to low redemption pressure.
Going forward, material changes in the Fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.
About
the Entity
MCB Investment Management Limited (MCBIM or the "Company") is a Public Listed Company, regulated by the SECP. MCBIM holds licenses for Asset Management, Investment Advisory, and Pension Fund Management. MCBIM caters to both conventional and Shariah-compliant clientele and is currently managing a diverse product slate of twenty two open-end funds and four voluntary pension schemes. MCBIM 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 MCBIM are MCB Bank Limited ~81.42%, and Adamjee Insurance Company Limited ~7.59%. The general public holds the remaining ~11% of the shares. Mr. Khawaja Khalil Shah is the CEO of the company. There are four non-executive directors, three directors are independent and one executive director (CEO). The AUMS of MCBIM stood at PKR 225bln at end-Jun'24.