The Pakistan Credit Rating Agency Limited
23-Dec-24
Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
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PACRA Maintains Stability Rating of Pak Oman Daily Dividend Fund
| Rating Type | Stability Rating | |
|
Current (23-Dec-24 ) |
Previous (15-Jun-24 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA(f) | AA(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Pak Oman Daily Dividend Fund (PODDF or the "Fund") is a low risk profile Fund. The investment objective of the Fund is to meet liquidity needs of investors by providing a daily payout through investment in Islamic Short-term instruments. The rating reflects the Fund's sound credit risk profile emanating from the Fund's sound investment policy and good credit quality. At end Sep'24, most of the investments was held in Govt Sec/AAA rated avenues (~86.5%) and ~13.82% in others. At end Sep'24, the Fund had allocated ~88.2% of the net assets as Bank Placements and ~11.8% in others. At end Sep'24, the WAM and Duration of the Fund stood at 1 day, exposing the Fund to very low credit rate and interest rate risk. At end Sep'24, the Fund's unit holding pattern of top 10 investors concentration was ~98.08%, keeping the redemption pressure at very high level. The Redemption pressure is addressed through maintenance of sufficient liquidity.
Going forward, any material changes in the Fund's asset allocation strategy, which could impact the Fund's credit quality and exposure to interest rate risk, would 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 ~99.46% owned subsidiary of Pak Oman Investment Company Limited and the remaining shareholder is Oman International Development and Investment Company, SAOG (0.54%). The Company’s Board of Directors comprises six members including the managing director of Pak Oman Investment Company, Mr. Nauman Ansari. 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 multiple open-end funds as of Sep'24 belonging to all major categories. The total AUMs of the Company stood at ~21,930mln at the end Sep'24.