PACRA Maintains Stability Rating of Pakistan Income Enhancement Fund
|Rating Type||Stability Rating|
The objective of the fund is to deliver return from aggressive investment strategy in the 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 Jun-18, the fund's exposure with cash and TFCs was ~47% and ~39% respectively, while with PIBs was 1.4%. The net assets as cash is placed in banks having credit rating of minimum 'A-'. The remaining assets of the fund were invested with good quality TFCs rated 'AA-' and above. The unit holding pattern of the fund is moderately diversified with top ten investors accounting for ~45% of the fund's assets.
Going forward, the management of the fund intends to maintain exposure towards cash, TFCs, government securities 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.
MCB Arif Habib Savings and Investments Limited was incorporated in August 2000 and listed on the Karachi Stock Exchange. It is a major player in the mutual fund industry of Pakistan. During June'11, 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 board of directors comprises two representatives from MCB, two representatives from Arif Habib Group, one member is the CEO CEO and three are independent directors. Mian Muhammad Mansha, Chairman MCB, serves as the Chairman on the board. Mr. Saqib Saleem is the CEO, having work experience of over thirteen years. With overall assets under management of ~PKR 53bln at end Oct-18, the company is currently managing sixteen open-end funds and two voluntary pension funds.