PACRA Maintains Stability Rating of BMA Chundrigar Road Savings Fund

The rating reflects the fund's average credit quality and liquidity profile. At end Jun'20, the fund is invested in bank (91.95%), while the rest is invested in TFC's. The Bank placements are made in A- rated banks, which has impacted the rating of the Fund. The unit holding pattern of the fund is highly concentrated with the top 10 investors representing ~91% of the net assets. However, this risk is mitigated by related party investments (~46%).
Going forward, the fund intends to maintain its exposure towards cash with A- rated banks. The main risk factors affecting the stability of returns are sensitivity of government securities to changes in interest rates. Material changes in the fund's asset allocation strategy, which could further impact the fund's credit quality and exposure to interest rate risk, remain critical for the rating.

About the Entity
BMA Asset Management Company was incorporated in April 2005 and acquired the license for investment advisory and asset management in April 2005 and July 2005, respectively. The ex-CEO of the company, Mr. Khaldoon bin Latif resigned in Nov-18 and the new CEO, Mr. Mian Qasim Saeed Ahmed joined as a CEO in August 2020. The management team comprises seasoned professionals and majority of the personnel have been with the company for more than a decade. The company has two funds under management, BMA Empress Cash Fund in the money market category and BMA Chundrigar Road Saving Fund in the aggressive fixed income category.

The Company's four member board comprise two independent and two non-independent directors. Mr. Salim Khan was appointed as the chairman of the board in October 2017. He possesses vast experience in strategic human resource consultancy and organizational development. The Company has a limited fund slate, as they are currently managing two funds with AUMs ~PKR 282mln at end Jun’20.