PACRA Maintains Stability Rating of Pak Oman Daily Dividend Fund
|Rating Type||Stability Rating|
Pak Oman Daily Dividend Fund (or the "Fund") is a low risk profile Fund. The assigned 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. The Fund had allocated ~94% in single bank rated AA whereas ~3.68% in others. As per the assigned rating criteria, the Fund must invest at least 25% in AAA rated avenues. The duration and the WAM of the Fund stood at 1-day, limiting the exposure to interest rate and credit risk. The top 10 investors concentration of the Fund, at Sep’22 was ~100% of which ~35% were related party investment, keeping redemption pressure at moderate level.
Going forward, the Fund compliance with the assigned rating criteria would remain imperative. Any material changes in the fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect 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 (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 Sep'22 belonging to all major categories. The AUMs of the Company stood at ~8bln in the Sep'22