The Pakistan Credit Rating Agency Limited
15-Jun-24
Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of Pak Oman Daily Dividend Fund
| Rating Type | Stability Rating | |
|
Current (15-Jun-24 ) |
Previous (20-Dec-23 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA(f) | AA(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Pak Oman Daily Dividend Fund (or the "Fund") is a low-risk profile Fund. The investment objective of Pak Oman Islamic Daily Dividend Fund is to meet the 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 investment policy to invest in strong credit quality investment avenues with sound liquidity. The credit quality of the Fund is based on its investment policy of ~81.9% in AAA rated Bank placements, whereas ~2.5% in AA Bank placements and 16.6% in others as at end Mar’24. 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 stood at 100% at end-Mar'24, leading to a very high redemption pressure. Redemption Pressure is addressed through 98.08% related party investments and maintenance of sufficient liquidity.
Going forward, any material changes in the investment policy and/or compliance with the rating criteria for the assigned rating would have an impact on the ratings.
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 multiple open-end funds as of Mar'24 belonging to all major categories. The total AUMs of the Company stood at ~4.6bln at the end Mar'24.