Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the stability rating of the Pak Oman Daily Dividend Fund, despite a notable reduction in the Fund's Assets Under Management (AUM) from PKR 70 million in September last year to PKR 23 million as of March 26. The Fund, categorized under a very low-risk Islamic Money Market Scheme, aims to meet liquidity needs by providing daily payouts through investments in Shariah-compliant short-term instruments.

According to The Pakistan Credit Rating Agency Limited, the decline in AUM remains a significant consideration given the Fund's relatively small scale. The asset allocation of the Fund shows a portfolio with approximately 52.94% in cash and cash equivalents and 47.06% in clearing receivables and short-dated settlement obligations. The Fund's strategy of maintaining a highly liquid profile is consistent with its objective of facilitating daily distributions and efficiently meeting redemption requirements.

From a credit quality perspective, 49.26% of the Fund's assets were invested in AAA-rated and Government-backed securities, while 1.40% was allocated to AA-rated instruments. The remaining 49.34% of the portfolio consisted of operational settlement receivables. The Fund's Weighted Average Maturity as of March 26 was one day, underscoring its minimal sensitivity to profit rate movements or credit risk, and reinforcing its liquidity support capacity.

Despite generating an annualized one-year return of 5.12% as of March 26, which is lower than its benchmark return of 9.56%, the Fund's conservative investment stance and elevated liquidity position have been maintained. A key concern remains the AUM level, which falls below the minimum threshold of PKR 100 million required by the Securities and Exchange Commission of Pakistan (SECP), resulting in regulatory non-compliance.

Looking ahead, the Fund's ability to strengthen its asset base, maintain liquidity, preserve credit quality, and comply with regulatory requirements and rating criteria will remain crucial. Any significant changes in these factors may affect the assigned rating.