The Pakistan Credit Rating Agency Limited
17-Aug-22
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of Askari High Yield Scheme
| Rating Type | Stability Rating | |
|
Current (17-Aug-22 ) |
Previous (17-Feb-22 ) |
|
| Action | Maintain | Maintain |
| Long Term | A(f) | A(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Askari High Yield Scheme (or the "Fund") is an open ended aggressive fixed income Fund, managed by Pak Oman Asset Management Company Limited. At the end Jun'22, the AUMs of the Fund standing at ~856mln (SPLY: ~2,133mln) The Fund had allocated ~39% in banks and ~25% in TFCs while exposure in commercial papers was ~5.09% and in Ijarah/Sukuk it was increased to ~10.14%. The Fund had invested ~11% in triple AAA, ~13% in double AA+ whereas ~50% in single A. Due to increase allocation in TFCs and Ijarah Sukuks, the duration of the Fund has been increased to 198 days at the end Jun'22 (Dec'21: 16 days). Hence, exposing the Fund to high interest rate risk. The WAM of the Fund was 558 days at the end Jun'22 (Dec'21: 354 days). However, the Fund remained compliant with the investment policy and rating criteria for the assigned rating. The unit holding pattern of the fund shows top ten investors concentration represents ~75% of the fund's assets exposing the Fund to moderate redemption pressure.
Going forward, material changes in the fund's asset allocation strategy, which could negatively impact the Fund's credit quality and exposure to interest rate risk, remain critical for 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 at Jun'22 belonging to all major categories.