The Pakistan Credit Rating Agency Limited
06-Mar-19
Analyst
Ayesha Qasim
ayesha.qasim@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Assigns Initial Stability Rating to Askari High Yield Scheme
| Rating Type | Stability Rating | |
|
Current (06-Mar-19 ) |
||
| Action | Initial | |
| Long Term | A(f) | |
| Short Term | - | |
| Outlook | - | |
| Rating Watch | - | |
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 rating reflects the fund's medium exposure to interest rate volatility, modest credit and low liquidity profile and moderate diversification across assets. At end Dec’18, fund's exposure in TFCs and Sukuks was ~78%, ~19% in cash having minimum of A- rating. While ~3% of the fund's assets were receivables. The unit holding pattern of the fund shows redemption pressure over the fund as top ten investors represents ~80% of the fund's assets.
Going forward, the fund intends to keep its exposure levels as per above criteria. 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 (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 comprise seven members including the managing director of Pak Oman Investment Company, Mr. Bahauddin 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 Feb'19 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 were acquired by Pak Oman Asset Management Company.