Pak Oman Daily Dividend Fund Retains Stable Rating Amid Low-Risk Profile

Karachi, The Pak Oman Daily Dividend Fund, a significant Islamic short-term investment vehicle, has maintained its stability rating, reflecting its low-risk profile and focus on providing daily liquidity to investors through Islamic short-term instruments.

According to Pakistan Credit Rating Agency Limited, the Fund’s rating is bolstered by a strong credit risk profile, which stems from its investment policy of allocating assets in high-quality, liquid investment avenues. As of September 2023, a substantial 90.28% of the Fund’s assets were invested in double ‘AA’ rated options, with the remainder placed in other diversified investments. This robust liquid profile is further supported by the Fund’s substantial investment in a double ‘AA’ rated bank, with 83.3% of the asset allocation in cash deposits.

The Fund’s Weighted Average Maturity (WAM) and Duration stand at just one day, indicating very low credit risk and interest rate risk. However, the unit holding pattern of the Fund is highly concentrated, with the top 10 investors representing 100% of the holdings, approximately 97.6% of which is from a related party.

Looking ahead, the Fund plans to further diversify its asset allocation into ‘AAA’ rated avenues, ensuring compliance with the rating criteria assigned. Any significant changes in the Fund’s investment policy or deviations from the prescribed rating criteria could impact its current rating.

Pak Oman Asset Management Company Limited, the entity behind the Fund, was established on July 28, 2006, as a public unlisted company. Licensed by the Securities and Exchange Commission of Pakistan, the company offers asset management and investment advisory services. Pak Oman Investment Company Limited holds a majority stake in the company, with the remaining shares owned by Oman International Development Company and Bank Muscat. The company’s Board of Directors is led by H.H Juland Jaifer Salim Al-Said, who possesses over 15 years of experience at the Oman Investment Authority. As of September 2023, the company managed a diverse portfolio of eight open-end funds across major categories, with total Assets Under Management (AUMs) of approximately PKR 4.49 billion.

The post Pak Oman Daily Dividend Fund Retains Stable Rating Amid Low-Risk Profile appeared first on Pakistan Business News.