PACRA Assigns Initial Stability Rating to Pak Oman Micro Finance Fund

Pak Oman Micro Finance Fund (“the Fund”) positions itself as a medium-risk investment solution, designed to deliver competitive returns through a specialized focus on Pakistan’s growing microfinance sector. The Fund strategically targets high-quality microfinance debt instruments, Microfinance Bank deposits, and short-term money market avenues, in line with its authorized investment universe. With a core objective of promoting financial inclusion while offering stable returns, the Fund blends defensive portfolio construction with sector-specific expertise. This unique positioning sets it apart in Pakistan’s fixed income space, where dedicated exposure to microfinance assets remains limited. As of April 2025, the Fund reported Assets Under Management (AUM) of ~PKR 110.94 million, underlining the niche yet impactful footprint in the microfinance investment landscape. On an asset-class basis, ~36% invested in bank deposits and ~64% in other receivables, showcasing a concentrated yet liquid approach to microfinance sector investments. From a credit quality standpoint, ~69% of assets were allocated to A+ rated instruments, while the remaining ~31% in non-rated avenues, indicating a measured appetite for developmental credit risk consistent with the Fund’s impact-oriented philosophy. Notably, the Fund maintains the shortest maturity profile in the market, with both Weighted Average Maturity (WAM) and duration at just one day, offering strong insulation against interest rate volatility and facilitating rapid asset turnover. The investor base is highly concentrated, with nearly ~100% of unit holdings attributed to the top 10 investors, indicating potential redemption pressure. However, this risk is effectively mitigated by the Fund’s short duration of just one day, enabling prompt and efficient redemptions. Overall, the Fund stands out in Pakistan’s fixed income market by aligning social impact with disciplined investment management.
Going forward, any material changes in the investment policy and/or compliance with the rating criteria for the assigned rating would have an impact on the ratings.

About the Entity
Pak Oman Asset Management Company Limited was incorporated on July 28, 2006, as a public unlisted company. It is licensed by the Securities and Exchange Commission of Pakistan to carry out asset management and investment advisory services under the Non-Banking Finance Companies Regulations. The company is a majority owned subsidiary of Pak Oman Investment Company Limited (99.46%). The remaining shareholders include Oman International Development and Investment Company, SAOG (0.54%). The Company’s Board of Directors comprises six members, including Mr. Nauman Ansari, Managing Director of Pak Oman Investment Company Limited, and Ms. Sadaf Kazmi, the CEO. The board’s chairman H.H. Sayyid Juland Jaifar Salim Al-Said has over 15 years of experience at the Oman Investment Authority (OIA) (Previously known as State General Reserve Fund). The company’s diverse product slate includes nine open end funds belonging to all major categories. The AUMs of the Company stood at ~PKR 1,662bln at the end of Apr'25.