Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Stability Rating of Pak Oman Daily Dividend Fund
Rating Type | Stability Rating | |
Current (20-Dec-23 ) |
Previous (27-Jun-23 ) |
|
Action | Maintain | Maintain |
Long Term | AA(f) | AA(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
Pak Oman Daily Dividend Fund (or the "Fund") reflects the low-risk profile Fund. The investment objective of Pak Oman Islamic Daily Dividend Fund is to meet the liquidity needs of investors by providing investors, a daily payout through investment in Islamic Short-term instruments. The rating reflects the fund's sound credit risk profile emanating from the fund's investment policy to invest in strong credit quality investment avenues with sound liquidity. As of Sep'23, the Fund's assets were 90.28% invested in double AA rated avenues while remaining in others. The strong liquid profile is backed by investment in a double 'AA' rated bank. The asset allocation consists of 83.3% cash deposits and the remaining in others. The WAM and Duration of the Fund stood at 1 day, hence the credit risk and the interest rate risk are very low. The unit holding pattern of the fund is concentrated with top10 investors representing 100% out of which ~97.6% is of related party.
Going forward, the fund is intending to diversify its asset allocation in AAA rated avenues, so that rating criteria for the assigned rating will get complied. Any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the rating.
About
the Entity
Pak Oman Asset Management Company Limited was incorporated on July 28, 2006 as a public unlisted company. It is licensed by the Securities and Exchange Commission of Pakistan to carry out asset management and investment advisory services under the Non-Banking Finance Companies Regulations. The company is a majority owned subsidiary of Pak Oman Investment Company Limited (98%). The remaining shareholders include Oman International Development Company (0.84%) and Bank Muscat (0.43%). The company’s Board of Directors comprises six members including the managing director of Pak Oman Investment Company, Mr. Bahauddin Khan. The board’s chairman H.H Juland Jaifer Salim Al-Said has over 15 years of experience at the Oman Investment Authority (OIA) (Previously known as State General Reserve Fund). The company’s diverse product slate includes eight open-end funds as of Sep'23 belonging to all major categories. The total AUMs of the Company stood at ~4.49bln at the end Sep'23