The Pakistan Credit Rating Agency Limited
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Muhammad Zain Ayaz

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PACRA Maintains Stability Rating of Askari High Yield Scheme

Rating Type Stability Rating
(17-Feb-22 )
(17-Aug-21 )
Action Maintain Maintain
Long Term A(f) A(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

The rating reflects Askari High Yield Scheme's (or the "Fund") moderate exposure to interest rate volatility, credit and liquidity profile and moderate diversification across assets. At end Dec'21, the Fund had allocated ~71% in banks having rating ‘A’ and above and ~20% in TFCs having rating ‘A+’ and above. The current investment strategy is in line with the investment policy. The unit holding pattern of the fund shows top ten investors concentration represents ~75% of the fund's assets giving rise to a moderate level of redemption pressure. The quarterly average duration of the Fund was 16 days, at Dec'21. Hence the market risk is low.
Going forward, the fund is expected to adhere to the current investment philosophy. The main aim of this strategy 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.

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 Dec'21 belonging to all major categories.

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.