PACRA Maintains the Stability Rating of Pak Oman Daily Dividend Fund | 'Assigns Rating Watch & Negative Outlook'

Pak Oman Daily Dividend Fund ("PODDF" or "the Fund") is categorized under a very low-risk Islamic Money Market Scheme, with the objective of meeting the liquidity needs of investors by providing daily payouts through investments in Shariah-compliant short-term instruments. The Fund aims to provide regular income while maintaining a highly liquid portfolio to cater to frequent redemption requirements. As of Jul'26, the Fund's Assets Under Management (AUM) stood at PKR 23mln, compared to PKR 70mln as of Sep'25 (the last review), a decline of roughly two-thirds that leaves the Fund materially and increasingly short of the PKR 100mln minimum regulatory requirement. In terms of asset allocation, approximately 53% of the portfolio was held in cash and cash equivalents, with the remaining 46% comprising other receivables. The elevated cash share supports the Fund's daily payout structure, though against a rapidly shrinking asset base it also points to limited capacity to attract or retain fresh subscriptions. The other receivables primarily represent clearing and settlement-related balances arising from the Fund's normal operational activities. From a credit quality perspective, approximately 9.92% of assets were placed in AAA rated instruments and 41.93% in AA-rated instruments, while the remaining 48.15% was classified as unrated, largely reflecting the clearing and settlement receivables noted above; this leaves close to half the portfolio outside the rated universe, even where the underlying exposure is operationally routine. The Fund's Weighted Average Maturity (WAM) stood at 1 day as of Jul'26, indicating negligible sensitivity to profit rate movements and, together with the cash position, supporting the Fund's ability to meet daily payout and redemption requirements. On performance, the Fund generated an annualized 365-day return of 3.34% as of Jul'26 against a benchmark return of 9.29%, a shortfall of nearly 600 basis points that has widened relative to the prior review period. The combination of a sharply contracting AUM base, sustained sub-benchmark returns, and continued non-compliance with the minimum regulatory AUM requirement has led to the placement of a Rating Watch with a Negative Outlook on the Fund's stability rating, reflecting heightened uncertainty around the Fund's near-term viability at its current scale.
Any material change in investment policy, AUM trajectory, or compliance with the assigned rating criteria would have a bearing on the rating.

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'25 belonging to all major categories. The AUMs of the Company stood at ~PKR 2,139mln at the end of Jun'26.