The Pakistan Credit Rating Agency Limited
12-Jul-17
Analyst
Mohsin Naseer
mohsin.naseer@pacra.com
+92-42-35869504
www.pacra.com
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PACRA Maintains Stability Rating of PIML Income Fund(Formerly Primus Cash Fund)
| Rating Type | Stability Rating | |
|
Current (12-Jul-17 ) |
Previous (30-Dec-16 ) |
|
| Action | Maintain | Maintain |
| Long Term | A+(f) | A+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The objective of the fund is to generate competitive returns by investing in short to long term debt instruments and securities.
The rating incorporates the fund's strong credit quality and sound liquidity profile, emanating from the fund's current portfolio mix. At end-May-17, the net assets of the fund largely comprised government securities (PIB's: 4.79%). Fund's exposure with banks was 75.2% with majority of exposure in 'AA-'. The remaining assets of the fund were invested with TFCs/ sukuks (i.e. 18.14%) with the credit rating of 'A' & above. The unit holding pattern of the fund is highly concentrated with the top10 investors representing 88% of the fund's assets. The higher unit holder concentration keeps the fund vulnerable to redemption pressure.
Going forward, the rating remains dependent on maintaining high exposure in Government securities along with high quality debt instruments and commercial banks rated 'AA-' and above.
About
the Entity
Established in 2011, Primus Investment Management Limited (PIML) is a public unlisted company incorporated under the Companies Ordinance, 1984. PIML is a Non-Banking Finance Company, licensed by the Securities and Exchange Commission of Pakistan to manage open and closed end funds and Investment Advisory. PIML is currently managing seven open end schemes with assets under management of PKR 3.5bln at end-May 2017.
In the month of March 2017, Army Welfare Trust (AWT) completed the acquisition of 70 per cent of the total shares in the company, by acquiring 70% shares of the company from Pak Brunei Investment Company Limited.
The CEO , Mr. Salman Haider possesses over 20 years of local and international Investment industry experience including almost 10 years on Wall Street in New York, USA. He has headed an Asset Management company in Pakistan successfully from 2006-2012. 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 Fund Manager, Mr. Khawar Salman, has a cumulative working experience of more than 16year.