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The Pakistan Credit Rating Agency Limited
Press Release

Date
31-Dec-18

Analyst
Masooma Zahid
masooma.zahid@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Upgrades Stability Rating of Pak Oman Government Securities Fund

Rating Type Stability Rating
Current
(31-Dec-18)
Previous
(30-Jun-18)
Action Upgrade Maintain
Long Term AA-(f) A+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

The primary objective of Pak Oman Government Securities Fund (POGSF) is to provide its unit holders competitive returns from portfolio of investment with low credit risk with maximum possible preservation of capital via investing in government securities.

The rating reflects the fund's good credit quality and a sound liquidity profile emanating from the fund's policy to invest in investment avenues with a mix of short-term and long-term government securities. At end June-18, ~67% of the fund's exposure was in short term Government securities (T-bills) and the remaining portfolio was invested in TFCs (~27) and term deposits (~5%). ~67% of the portfolio is invested in AAA rated avenues which depicts strong credit quality. The duration of the fund stood at 0.09 days at end June-18. The weighted average maturity of the fund was below 2 years in the last quarter of FY18.

Going forward, the rating remains dependent on maintaining at least 70% allocation towards government securities (AAA rated) with portfolio duration not exceeding 2 years.

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 (SECP) to carry out asset management and investment advisory services under the Non-Banking Finance Companies Regulations. During the year, the company remained a majority owned subsidiary of Pak Oman Investment Company Limited (97%). The remaining shareholders include Oman International Development Company (1.2%), Bank Muscat (0.6%) and National Logistic Cell (1.2%).

The company’s Board of Directors (BoD) currently comprise eight members including the CEO, Mr. Adeel Ahmad Khan. The board’s chairman H.E. Yahya Bin Said Bin Abdullah Al-Jabri is the Minister of the Special Economic Zone Authority at A’Duqum, Sultanate of Oman. The company’s diverse product slate includes eleven open-end funds as at March-18 belonging to all major categories. Pak Oman has four open-end funds under its name, while seven open-end funds belonged to Askari Investment Management Limited which have now been acquired by Pak Oman Asset Management Company.

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.