PACRA Maintains Stability Rating of Pak Oman Income Fund (Formerly Pak Oman Government Securities Fund)

The Pak Oman Income Fund ('POIF' or the 'Fund') presents a moderate risk profile. The primary objective of the Fund is to provide its unit holders competitive returns from portfolio of investment with low credit risk with maximum possible preservation of capital via investing in Government Securities. The assigned rating reflects the Fund's moderate risk profile, which stems from its investment policy framework. As of Dec'24, the AUM size of the Fund stood at ~PKR 262mln. In terms of asset class, ~68% was allocated to bank placements, ~19.0% in TFC's and the remaining was invested in others. In perspective of credit quality, the Fund had majorly invested in A+ rated avenues (~62%), ~19% was invested in AA- rated, while the remaining was invested in others. At the end of Dec'24, the Fund's duration stood at 12 days, reflecting limited exposure to interest rate risk. Meanwhile, the Fund’s weighted average maturity (WAM) was recorded at 431 days, indicating a relatively higher credit risk. The unit holding pattern of the Fund is notably concentrated, with approximately 99.9% held by the top 10 investors, which may lead to elevated redemption pressure. However, this risk is prudently managed through the maintenance of sufficient liquidity buffers.
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 the managing director of Pak Oman Investment Company Limited, Mr. Nauman Ansari. 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 as of Dec'24 belonging to all major categories. The AUMs of the Company stood at ~PKR 2,353mln at the end of Dec'24.