PACRA Maintains Stability Rating of Askari High Yield Scheme
|Rating Type||Stability Rating|
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 2,874mln at the end Jun’23 (Dec’22: PKR 466mln). The Fund had allocated ~87.8% in cash in banks majority in single bank rated A+, ~5.9% in TFCs rated A+ and above, ~0.4% in Corporate Sukuks rated AA+. Whereas ~2.82% in GoP Ijarah Sukuks at the end Jun’23. The duration of the Fund stood at 37 days at end Jun’23, limiting interest rate risk whereas the WAM of the Fund stood at 120 days at the end Jun’23, exposing moderate credit risk. However, the credit risk is manageable due to investment in Govt Securities. The unit holding pattern of the Fund is highly concentrated where ~95.4% is represented by top 10 investors. However, ~65.2% is of single party, keeping redemption pressure at high level.
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 eight open end funds as at Jun'23 belonging to all major categories. The AUMs of the Company stood at~6.3bln in the Jun'23.