Lahore, December 30, 2021 (PPI-OT):Pak Oman Daily Dividend Fund (or the “fund”) is an open ended shariah compliant market fund, managed by Pak Oman Asset Management Company Limited. In order to strengthen its relative position in Islamic money market category, Pak Oman Asset Management Company Limited has launched the fund in Dec’21, it has achieved a size of PKR ~200mln. The rating reflects the fund’s low credit risk profile emanating from the fund’s investment policy to invest in strong credit quality investment avenues with sound liquidity. On Dec’21, fund’s assets were ~99% invested with single bank rated ‘AA’.

Further, the investment policy of the Fund strictly prohibits investment in below AA rated avenues, limiting the credit risk. The current weighted average maturity (WAM) of the fund is 1 day. The Fund plans to cap its WAM below 60 days. Whereas the unit holding pattern is currently concentrated with top 10 investors representing 100% of the total fund size.

The offering document of the fund, restricts the fund to liquid and low risk profile avenues, which reflects redemption risk as well. Any material breach of investment policy is considered negative. Going forward, the fund will continue its current allocation strategy, the change in strategy is completely dependent on the growth in Fund size. The strategy represents high liquidity and low risk profile, which bodes well to 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