PACRA Maintains the Stability Rating of Pak Oman Advantage Islamic Income Fund | 'Assigns Rating Watch'

Pak Oman Advantage Islamic Income Fund ("POAIIF" or "the Fund") is categorized under a medium-risk profile, with the objective of providing investors competitive current income and long-term capital growth through investment in a diversified portfolio of Shariah compliant securities available for investment outside Pakistan, subject to applicable laws. As of Jun'26, the Fund's Assets Under Management (AUM) stood at PKR 110mln, compared to PKR 92mln as of Dec'25 (the last review). In terms of asset allocation, approximately 56% of the portfolio was held in cash, 23% in GoP Ijarah Sukuks, 11% in Sukuks, and ~10% in other receivables. The cash-heavy positioning supports liquidity but also caps yield potential, a factor that bears directly on the Fund's return profile discussed below. From a credit quality perspective, approximately 36% of the Fund's assets were placed in Government Securities and AAA rated instruments, ~11% in AA+ rated avenues, and ~41% in AA rated instruments, with the remainder in other exposures; the overall credit profile is assessed as compliant with the assigned rating criteria. The Fund's Weighted Average Maturity (WAM) stood at 164 days as of Jun'26, indicating moderate sensitivity to interest rate movements and consistent with the Fund's medium-risk Islamic income mandate. The unit holding pattern reflects a high degree of concentration, with the top 10 investors accounting for ~98% of total holdings, of which ~63% comprise associated companies and ~31% provident funds. This concentration lowers redemption risk given the sticky nature of these investor categories, but it also means the AUM growth recorded since Dec'25 is largely attributable to related-party behavior rather than broad-based subscription, a distinction relevant to the sustainability of the Fund's asset base. On performance, the Fund reported a one-year return of 5.82% against a benchmark of 9.44%, an underperformance of approximately 362 basis points that is consistent with the elevated cash allocation noted above. The rating has been placed on Rating Watch as the Fund's average AUM of PKR 101mln over the year remains only marginally above the regulatory minimum of PKR 100mln, a headroom made more fragile by the concentrated, associated-company-driven nature of the asset base.
Going forward, any material changes in the Fund's investment policy, AUM trajectory, and/or compliance with the assigned rating criteria would have an impact 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.