JCR-VIS Credit Rating Company Ltd has reaffirmed the fund stability rating of Pak Oman Advantage Fund (POAF) at 'AA-(f) (Double A minus (f)). POAF aims to provide returns from a portfolio of fixed income securities that carry minimal credit, liquidity and price risks.
JCR-VIS has also assigned fund stability rating of 'A (f)' (Single A (f) to Pak Oman Bank of Punjab Advantage Plus Fund (PAPF). This is an open-end income fund, launched with the objective to provide a stable stream of income with a moderate level of risk.
All investments in fixed income instruments are required to have a minimum rating of 'A'. The fund may also take exposure in ready future spread transactions and provide financing against shares by way of Continuous Funding System. The target duration of portfolio is 2-3 years. The fund had net assets of Rs 2.71 billion as of November 15, 2007. Unit holder concentration is presently significant, though liquidity risk is low on account of significant assets held in cash and bank balances.
Pak Oman Asset Management Company (POAMC) manages both these funds. The shareholders of the company include both local and foreign institutions, namely, Pak Oman Investment Company Limited, Oman National Investment Corporation, Bank Muscat and National Logistics Cell. With a paid up capital of Rs 330 million, the company has adequate resources to develop the infrastructure required for fund management.-PR