PACRA Maintains Stability Rating of Pakistan Income Enhancement Fund
|Rating Type||Stability Rating|
The rating incorporates the fund's moderate credit quality and interest rate risk profile, emanating primarily from its mandate to invest in good quality and low duration avenues such as bank placement's and T-Bills, ensuring low exposure to interest rate risk. At end-Jun'19, 43% of fund's assets were allocated to bank placements and 23% in TFCs, whereas 33% of exposure was given to T-Bills. Fund's unit holding pattern is moderately concentrated with top 10 investors representing 32% of the net assets.
Going forward, the management of the fund intends to increase it's current exposure in T-Bills. Material changes in the fund's asset allocation strategy, impacting it's credit quality and/or exposure to interest rate risk, would affect the rating.
MCB Arif Habib Savings and Investments Limited ("The Company" or "MCBAH") a subsidiary of MCB Bank Limited, was incorporated in August 2000 and is listed on the Pakistan Stock Exchange. MCBAH is a major player in the mutual fund industry of Pakistan. In June 2011, MCBAH was merged into Arif Habib Corporation Limited, with the objective of achieving synergies in asset management business and access to a wider distribution network.
The Company's Board comprises eight members including the CEO and Chairman. Two representatives are from MCB Bank Limited, two representatives from Arif Habib Corporation Limited, and three independent directors. Mian Muhammad Mansha, Chairman MCB, serves as the Chairman of the Board. Mr. Saqib Saleem is the CEO, possessing relevant experience of over thirteen years. With overall assets under management of ~PKR 57bln at end Nov-19, the Company is currently managing fifteen open-end funds and two voluntary pension schemes. The assets under management of separately managed accounts (SMA) were ~PKR 38bln at end Nov-19.