PACRA Maintains Stability Rating of Pak Oman Income Fund (Formerly Pak Oman Government Securities Fund)
|Rating Type||Stability Rating|
Pak Oman Income Fund (or the “Fund”) is a moderate risk profile Fund. 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 Fund remained compliant with the given criteria of investing maximum 25% in single A rated avenues. In Fact, the Fund had allocated ~86.7% cash in banks majority in single bank rated A+ whereas ~4.3% in TFC/Sukuk rated A+ and above at the end Dec’22. The duration of the Fund stood at 6 days at end Dec'22 (Jun'22: 4 days), limiting the exposure to interest rate risk whereas the WAM of the Fund stood at 73 days at the end Dec’22 (Jun'22: 51 days), exposing low credit risk. The unit holding pattern of the Fund is highly concentrated where ~99.9% is represented by top 10 investors, depicting high 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.
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 at Dec'22 belonging to all major categories. The AUMs of the Company stood at~9.3bln in the Dec'22.