Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Stability Rating of Askari High Yield Scheme
Rating Type | Stability Rating | |
Current (16-Feb-24 ) |
Previous (17-Aug-23 ) |
|
Action | Maintain | Maintain |
Long Term | A(f) | A(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
Askari High Yield Scheme Fund (or the “Fund”) is a moderate risk profile Fund. The objective of the Fund is to provide investors an opportunity to make competitive returns from fixed income securities while targeting a portfolio duration of six months. The assigned rating reflects the Funds' moderate credit risk profile emanating from the Fund's investment policy to invest in avenues with sound liquidity. The AUMs of the Fund stood at PKR 445mln at the end Dec’23 (Jun’23: PKR 2,874mln). The Fund remained compliant with the given criteria of investing maximum 25% in single A- rated avenues. The Fund had allocated ~11.0% cash in banks, ~15.4% in TFCs, ~29.8% in GoP Ijarah Sukuks whereas ~43.8% in others at the end Dec’23. The Credit Quality of the fund comprises of ~30.1% in AAA, ~3% in AA+, ~14.9% in AA- and ~25% in A+ rated avenues at the end Dec'23. Since the investments of ~43.8% is in Ijarah sukuks, The duration of the Fund stood at 730 days at end Dec'23. However, the Interest risk is manageable. The WAM of the Fund stood at 1,108 days at the end Dec’23, exposing high credit risk. The unit holding pattern of the Fund is highly concentrated where ~90.97% is represented by top 10 investors. The Fund would remain exposed to redemption pressure.
Going forward, the Fund compliance with the assigned rating criteria would remain imperative. Any material changes in the fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect 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 nine open end funds as of Dec'23 belonging to all major categories. The AUMs of the Company stood at~4.6bln in the Dec'23