PACRA Maintains Stability Rating of Askari High Yield Scheme
|Rating Type||Stability Rating|
The rating reflects the fund's medium exposure to interest rate volatility, modest credit and liquidity profile and moderate diversification across assets. At end Dec-19, fund's exposure in TFCs was ~59%, of which most are placed in A+ rated financial instruments. Also the fund had ~20% in cash and TDR's with minimum A- rating. While ~6% 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 ~82% of the fund's assets.
Going forward, the fund intends to change the funds exposure and look to reduce the allocations in TFC's and T-Bills. The main aim of this would be reduce the interest rate risk, volatility of returns and duration of the fund. 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.
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 comprises six 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 eight open-end funds, six conventional and two shariah compliant funds, as at Dec'19 belonging to all major categories.