PACRA Maintains Stability Rating of Pak Oman Income Fund

Pak Oman Income Fund (“POIF” or "the Fund”) is a moderate risk profile fund. The primary objective of the Fund is to provide unit holders competitive returns through a portfolio of investments with relatively low credit risk and maximum possible preservation of capital, primarily via exposure to government securities and related instruments. As of Dec’25, the Fund’s AUM stood at PKR 207mln, down from PKR 251mln at the time of the last review, reflecting moderate net outflows during the period while maintaining the Fund’s investment strategy. In terms of asset allocation, the Fund maintained ~60% in bank placements, ~24% in TFCs, and the remaining ~16% in other instruments. The allocation reflects a combination of liquidity and corporate exposure to enhance yield. From a credit quality perspective, ~55% of the portfolio was invested in A- rated avenues and ~24% in AA- rated instruments, with the remaining portion allocated to other categories. This composition indicates moderate credit risk exposure, with a meaningful tilt toward mid-tier rated instruments. At end-Dec’25, the Fund’s duration stood at 15 days, limiting sensitivity to interest rate movements and supporting liquidity management. However, the WAM was recorded at 456 days, indicating relatively high credit risk exposure due to longer maturity instruments. The unit holding pattern remained highly concentrated, with approximately 100% of units held by the top 10 investors. Notably, ~59% of these holdings were related to associated companies, which provides some stability to the investor base and partially mitigates redemption pressure. In terms of performance, the Fund reported an annualized return of 7.38% as of Dec’25, which remained below the benchmark return of 10.36% and the peer average return of 12.96%, indicating underperformance relative to comparable funds.
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'25 belonging to all major categories. The AUMs of the Company stood at ~PKR 8,621 mln at the end of Dec'25.