The Pakistan Credit Rating Agency Limited
30-Jun-18
Analyst
Shahzaib Khalid
shahzaib.khalid@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of Pakistan Income Enhancement Fund
| Rating Type | Stability Rating | |
|
Current (30-Jun-18 ) |
Previous (12-Jul-17 ) |
|
| Action | Maintain | Maintain |
| Long Term | A+(f) | A+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The objective of the fund is to deliver return from aggressive income strategy in debt and fixed income market.
The rating reflects sound credit quality and liquidity profile of the fund emanating from the portfolio composition of the fund. At end-Dec 17, the fund's exposure with PIBs was 0.9%, whereas its exposure with cash and TFCs was 21.8% & 30% respectively. The investment in banks consists of 'A+' (3.53%), 'AAA' (6.37 %) and 'AA+' (6%) rated banks. The remaining assets of the fund are invested with good quality TFCs rated 'AA-' & above. The unit holding pattern of the fund is moderately diversified with top10 investors accounting for 47% of the fund's units.
Going forward, the management of the fund intends to maintain exposure towards cash, TFCs, Govt-Securities, spreads, MTS and other fixed income securities. The rating of the fund remains contingent upon managing the credit quality of the fund and impact of volatility in prices of assets.
About
the Entity
MCB Arif Habib Savings & Investments Limited (MCBAH) incorporated in August 2000 and listed on the Karachi Stock Exchange, is a major player in the mutual fund industry of Pakistan. During Jun11, MCB Asset Management Company was merged into Arif Habib Investments. The objective was to achieve synergies in the asset management business and access a wider distribution network.
Company’s eight members BoD, two representatives from MCB, two representatives from Arif Habib Group, CEO and three are independent. Mian Muhammad Mansha, Chairman MCB, serves as the Chairman on the board. Mr. Saqib Saleem is the CEO, having working experience of over thirteen years. With overall assets under management of ~ PKR 53 billion, the company is currently managing sixteen open-end funds and two voluntary pension funds.