The Pakistan Credit Rating Agency Limited
30-Jun-22
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains the Stability Rating of Pak Oman Daily Dividend Fund
| Rating Type | Stability Rating | |
|
Current (30-Jun-22 ) |
Previous (29-Dec-21 ) |
|
| Action | Maintain | Initial |
| Long Term | AA(f) | AA(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Pak Oman Daily Dividend Fund (or the "Fund") is an open ended shariah compliant money market Fund, managed by Pak Oman Asset Management Company Limited. Since its launched, the Fund has achieved a size of PKR ~205mln. The rating reflects the Fund's low credit risk profile emanating from the Fund's investment strategy to invest in strong credit quality investment avenues with sound liquidity. At end Mar'22, the AUMs of the Fund were PKR ~205mln. The Fund had allocated ~96.32% in bank placements and invested ~3.68% in others. The duration and the WAM of the Fund was 1 day limiting the exposure to low interest rate risk. The top 10 investors concentration of the Fund, at Mar’22 was ~99% of which ~75% were other than related party investment exposing the Fund to moderate redemption pressure.
Going forward, the Fund will continue its current allocation strategy, any change in investment strategy would impact the rating. The strategy represents high liquidity and low risk profile, which bodes well to 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%), Bank Muscat (0.43%) and National Logistic Cell (0.84%).
The company’s Board of Directors comprise 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 Sep'21 belonging to all major categories.