Karachi: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating for Askari Sovereign Yield Enhancer (ASYE) at ‘AA-(f)’, reflecting a high degree of stability in the Fund’s Net Asset Value.
According to VIS Credit Rating Company Limited, the rating indicates that while the risk is modest, it could fluctuate due to changing economic conditions.
Launched in December 2011, ASYE is an open-end income fund managed by Pak Oman Asset Management Limited. Its primary objective is to generate yields higher than conventional bank deposits by investing in a portfolio of creditworthy sovereign instruments and banking sector fixed-income instruments and deposits.
The rating reflects the Fund’s asset allocation strategy, which adheres to the guidelines in its offering document, predominantly investing in Treasury Bills and maintaining some exposure in Cash and Pakistan Investment Bonds (PIBs). Throughout the year, the Fund’s Assets Under Management (AUM) only slightly surpassed the minimum fund size threshold. The Fund increased its allocation to Government Securities and AAA-rated assets during FY24, though its credit quality faced challenges as some placements moved to the A band. Maintaining credit quality in alignment with VIS benchmarks will be crucial for future ratings.
The Fund’s weighted average time to maturity (WAM) and duration remained within the limits set in the offering document. Retail investors made up nearly the entire AUM, with minimal corporate investor involvement, contributing to an elevated client concentration risk. The Fund’s annualized return outperformed both its benchmark and peer average, advancing to the first quartile from the second quartile compared to the previous year.
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