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Lahore, August 18, 2023 (PPI-OT): Pak Oman Income Fund (or the “Fund”) is a moderate risk profile Fund. The objective of the Fund is to provide its unit holders competitive returns from portfolio of investment with low credit risk with maximum possible preservation of capital via investing in Government Securities. The assigned rating reflects the Funds’ moderate credit risk profile emanating from the Fund’s investment policy to invest in avenues with sound liquidity. The AUMs of the Fund stood at PKR 1,567mln at the end Jun’23 (Dec’22: PKR 2,482mln). The Fund had allocated 91.4% cash in banks majority in single bank rated A+ whereas 6.4% in Corporate Sukuks rated A+ at the end Jun’23.
The duration of the Fund stood at 3 days at end Jun’23, limiting the exposure to interest rate risk whereas the WAM of the Fund stood at 99 days at the end Jun’23, exposing moderate credit risk. The unit holding pattern of the Fund is highly concentrated where top 10 investors represent 100%. However, 76.18% is of single party, keeping redemption pressure at high level.
Going forward, the Fund compliance with the assigned rating criteria would remain imperative. Any material changes in the fund’s asset allocation strategy, affecting 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: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com
The post PACRA Maintains Stability Rating of Pak Oman Income Fund (Formerly Pak Oman Government Securities Fund) appeared first on Pakistan Business News.