PACRA Upgrades Stability Rating of Pak Oman Advantage Islamic Income Fund : AsiaNet-Pakistan

PACRA Upgrades Stability Rating of Pak Oman Advantage Islamic Income Fund

September 15, 2020 | | Share:

Lahore, September 15, 2020 (PPI-OT): The rating incorporates the fund’s moderate risk level. The asset allocation comprises of ~83% of fund’s assets as cash balances at end Jun’20. Fund’s exposure in Sukuks decreased to ~11%, as compared to Dec’19, having minimum credit rating of ‘A+’. The duration of the fund was 99 days at end Jun’20. The unit holding pattern of the fund is highly concentrated where ~99% is represented by top 10 investors. However, ~16.9% of the fund size are investments made by the Company itself which reduces the risk of redemption pressure.

Going forward, the management of the fund intends to maintain its exposure in debt instruments which may impact the duration. Meanwhile, the fund plans to remain invested in sound credit quality banks. Material changes in the fund’s asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.

For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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