Analyst
Muhammad Usman
muhammad.usman@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Stability Rating of BMA Chundrigar Road Savings Fund
Rating Type | Stability Rating | |
Current (29-Nov-18 ) |
Previous (30-Jun-18 ) |
|
Action | Maintain | Maintain |
Long Term | A+(f) | A+(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
The rating reflects the fund's average credit quality and liquidity profile. At end-Jun18, the fund is invested in TFCs 2%, while exposure as cash with banks was ~97%. The exposure was with banks rated 'A' and above with the highest exposure in ‘A’ 80%. The fund WAM stood at 38 days as at end Jun-18. The unit holding pattern of the fund is highly concentrated with the top 10 investors representing 96% of the net assets.
Going forward, the fund intends to maintain its exposure towards cash with banks rated A- and above. The main risk factors affecting the stability of returns are the sensitivity of government securities to changes in interest rates. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk remains critical for the rating.
About
the Entity
BMA Asset Management Company (BMA AMC), incorporated in July 2006 as a public unlisted company, is licensed to carry out asset management and investment advisory services under the Non-Banking Finance Companies Regulations. The company is majorly owned subsidiary of BMA Capital Management. The company has a limited fund slate (currently managing two funds). In terms of AUMs, it stood at ~PKR 598mln in Jun-18 (~PKR 209mln in Jun-17).
BMA AMC has a five-member board including the CEO, Mr. Khaldoon Bin Latif. The other board member comprises two independent directors. Mr Salim Khan was appointed as a Chairman of the board in October 2017 board election. He possesses vast experience in Strategic Human Resource Consultancy and Organizational Development.