The Pakistan Credit Rating Agency Limited
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Madiha Sohail

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PACRA Maintains Stability Rating of Pak Oman Income Fund

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

Pak Oman Income Fund's (Formerly Pak Oman Government Securities Fund) is an open ended income market Fund, managed by Pak Oman Asset Management Company Limited. At the end Jun'22,, the AUMs of the Fund were ~1,150mln (Dec'21: 1,167mln). The Fund had allocated ~81.2% in banks whereas ~9.3% in TFCs, ~6.3% in GoP/Ijarah and ~3.3% in others. The assigned rating takes into account the moderate risk profile of the Fund. The credit quality of Fund was ~62.7% in double AA-, ~6.31% in triple AAA whereas ~22.2% in single A. The Fund has shifted its allocation from cash to long term bonds resultantly, the duration increased to 91 days at the end Jun'22 (Dec'21: 44 days). The WAM of the Fund was 115 at the end Jun'22 (Dec'21: 158) exposure to moderate interest rate risk. The unit holding pattern of the fund was highly concentrated with top ten investors representing ~100% of the fund's assets, of which ~14% are related parties exposing the Fund to high risk of redemption pressure. Meanwhile, the Fund remained compliant with investment policy ad rating criteria for the assigned rating.
Going forward, material changes in the fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect 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 Jun'22 belonging to all major categories.

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