Analyst
Madiha Sohail
madiha.sohail@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 (01-Mar-24 ) |
Previous (01-Sep-23 ) |
|
Action | Maintain | Maintain |
Long Term | AA-(f) | AA-(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
Pakistan Income Fund ("PIF" or the "Fund") reflects the Fund's medium-risk profile. The investment objective of the Fund is to deliver returns primarily from debt and fixed income investments without taking excessive risk. The assigned rating reflects the Fund's moderate credit risk profile emanating from Fund's Investment policy to invest in avenues with sound liquidity. The AUMs of the Fund stood at PKR 2,145mln at the end of Dec’23. The Fund had allocated ~32.7% in T-Bills, ~29.3% in banks, ~17.9% in TFC/Sukuk, ~11.3% in PIBs and ~5.8% in GoP Ijara sukuk. The WAM of the Fund to 876 days, exposing credit risk. However, since the investment in long-term Govt papers, the credit risk is manageable. The duration of the Fund was 162 days at the end of Dec’23. As of Dec'23, the unit holding pattern of the Fund was ~43.24% representing top ten investor concentration; limiting the exposure to redemption pressure. However, the ability to meet redemption remained sound on the back of strong liquid profile. During CY23, the Fund remained compliant with the credit quality criteria throughout the period. The Fund's performance during CY23 remained in line with the benchmark and gave an annualized return of 19.8%.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the ratings. Risk may vary slightly from time to time considering the volatility of economic conditions.
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 nineteen 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 CEO. The AUMs of MCBIM stood at PKR 164bln at end-Dec'23.