logo
The Pakistan Credit Rating Agency Limited
Press Release

Date
12-Jul-17

Analyst
Mohsin Naseer
mohsin.naseer@pacra.com
+92-42-35869504
www.pacra.com

Applicable Criteria

Related Research

Disclaimer
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Stability Rating of PIML Islamic Income Fund (PIML IIF)

Rating Type Stability Rating
Current
(12-Jul-17)
Previous
(13-Dec-16)
Action Maintain Maintain
Long Term A(f) A(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

The investment objective of the fund is to generate competitive returns by investing in short, medium and long-term Shariah Compliant Fixed Income Instruments.

The rating reflects the fund's credit risk profile emanating from its majority of portfolio allocation towards 'AA-'(86.7%) rated banks. The fund continued to remain invested predominantly in banks over the last couple of quarters. The remaining portfolio is invested in Sukuk (11.3%) This limits impact of any interest rate movement on fund's respected NAV at end-May17. The unit holding pattern of the fund represents high redemption risk. The top 10 investors concentration was at 96% at end Dec-16, representing redemption risk

Going forward, PIML Islamic Income Fund is intended to gradually build exposure in shariah compliant government/ debt securities and instruments having strong credit quality. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remain critical for the rating.

About the Entity
Established in 2011, Primus Investment Management Limited (PIML) is a public unlisted company incorporated under the Companies Ordinance, 1984. PIML is a Non-Banking Finance Company, licensed by the Securities and Exchange Commission of Pakistan to manage open and closed end funds and Investment Advisory. PIML is currently managing seven open end schemes with assets under management of PKR 3.5bln at end-May 2017.

In the month of March 2017, Army Welfare Trust (AWT) completed the acquisition of 70 per cent of the total shares in the company, by acquiring 70% shares of the company from Pak Brunei Investment Company Limited.

The CEO , Mr. Salman Haider possesses over 20 years of local and international Investment industry experience including almost 10 years on Wall Street in New York, USA. He has headed an Asset Management company in Pakistan successfully from 2006-2012. His experience on Wall Street included NASD licenses of series 7 and 63 along with working at reputable institutions within the investment management industry.

The Fund Manager, Mr. Khawar Salman, has a cumulative working experience of more than 16year.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.