Draft PR
The Pakistan Credit Rating Agency Limited

Rai Umar Zafar

Mohsin Naseer

Applicable Criteria

  • Methodology | Fund Stability Rating (Jun 17)
  • Methodology | Debt Instruments Rating Methodology (Jun 17)
  • Methodology | Preference Shares Rating Methodology (Jun 17)
  • Methodology | Correlation between long-term and short-term rating scale (Jun 17)
  • Methodology | Criteria Modifiers (Jun 17)

Related Research

  • Sector Study | Mutual Funds (Oct 16)
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PACRA Maintains Stability Rating of PIML Daily Reserve Fund (Formerly PRIMUS Daily Reserve Fund)
 Rating Type Stability Rating
 Action Maintain Maintain
 Long Term AA(f) AA(f)
 Short Term - -
 Outlook Stable Stable
 Rating Watch - -

The objective of the fund is to generate consistent returns with minimal risk by investing primarily in government securities, cash & near cash instruments.

The objective of the fund is to generate consistent returns with minimal risk by investing primarily in government securities, cash & near cash instruments. The rating reflects the fund's investment philosophy. At end-May17, fund's exposure with T-Bills was 97. The remaining assets of the fund were invested as cash with the banks rated 'AA+' and ‘AA’. The duration of the fund was 56 days. The fund possess high redemption risk as its unit holding pattern represents that almost entire portfolio is concentrated with top 10 investors.

Going forward, the rating remains dependent on maintaining exposure with high credit quality financial institutions with portfolio duration not exceeding 90 days. Meanwhile, the remaining assets of the fund must be placed with scheduled banks and DFIs having credit ratings 'AA' and above. PACRA would monitor compliance against agreed parameters on monthly average basis.
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 16 year.
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.