The Pakistan Credit Rating Agency Limited
Press Release


Masooma Zahid

Applicable Criteria

Related Research

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 Pakistan Income Enhancement Fund

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

The rating reflects stable credit quality and liquidity profile of the fund emanating from the portfolio composition of the fund. At end Dec-18, the fund's exposure with cash and TFCs was ~47% and ~51% respectively. The net assets as cash are 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 well diversified with top ten investors accounting for ~34% of the fund's assets at end Dec-18.
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.

About the Entity
MCB Arif Habib Savings and Investments Limited (MCBAH), incorporated in August 2000 and listed on the Pakistan Stock Exchange, is a major player in the mutual fund industry of Pakistan. In June 2011, MCB Asset Management Company was merged into Arif Habib Investments. The objective was to achieve synergies in asset management business and access a wider distribution network.

The Company's Board has seven members. Two representatives are from MCB, two representatives from Arif Habib Group, two are independent and the CEO. Mian Muhammad Mansha, Chairman MCB, serves as the Chairman of the Board. Mr. Saqib Saleem is the CEO, having work experience of over thirteen years. With overall assets under management of ~PKR47 bln at end Feb’19, the Company is currently managing fifteen open-end funds and two voluntary pension funds.

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.