The Pakistan Credit Rating Agency Limited
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Muhammad Usman

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

Rating Type Stability Rating
Action Maintain Maintain
Long Term A(f) A(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

The rating reflects the fund's credit risk profile emanating from its portfolio which is 85% allocated towards 'A+ rated banks. The fund continued to remain invested predominantly in banks over the last few quarters. The remaining 14% portfolio is invested A rated Sukuk. The unit holding pattern of the fund represents high redemption risk. The unit holding pattern of the fund is concentrated with the top10 investors representing 93% of the portfolio.

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
Primus Investment Management Limited (PIML) is a public unlisted company incorporated in 2011. PIML is a Non-Banking Finance Company, licensed by the Securities and Exchange Commission of Pakistan to manage open-end and closed-end funds and Investment Advisory. PIML is currently managing seven open-end schemes with assets under management of PKR 1.7bln at end-Dec 2017. In the month of March 2017, Army Welfare Trust (AWT) acquired 70% shares of the company from Pak Brunei Investment Company Limited.

The CEO, Mr. Salman Haider possesses over two decades of local and international experience in Investment management industry including almost 10 years on Wall Street in New York, USA. 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 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.