PACRA Maintains the Stability Rating of Pak Oman Income Fund

Pak Oman Income Fund ("POIF" or "the Fund") is categorized under a medium-risk profile, with the objective of achieving a good rate of current income consistent with reasonable concern for safety of principal, while providing investors with liquidity and the facility to join or leave the fund at their convenience. As of Jun'26, the Fund's Assets Under Management (AUM) stood at PKR 196mln, compared to PKR 207mln as of Dec'25 (the last review), reflecting a marginal contraction in fund size during the review period. In terms of asset allocation, approximately 85% of the portfolio was invested in cash, with the remaining ~15% in other receivables, reflecting a near-exclusively liquid portfolio positioning during the review period. From a credit quality perspective, approximately 2% of the Fund's assets were invested in AAA rated instruments, ~29% in A+ rated avenues, and ~54% in A- rated instruments, with the remainder in other exposures. The overall credit profile is considered sound. The Fund's Weighted Average Maturity (WAM) stood at 365 days as of Jun'26, reflecting moderate-to-high sensitivity to interest rate movements, which is broadly consistent with the Fund's medium-risk income mandate and its strategy of capturing competitive yield across varying tenor fixed income instruments. Meanwhile, the top 10 investors accounting for ~100% of the Fund's total holdings, of which ~55% comprise associated companies and ~44% provident funds, both of which are typically long-term and stable in nature, providing a highly captive and resilient investor base. Consequently, despite the concentration, redemption pressure is assessed as low, given the sticky nature of the dominant investor categories. In terms of performance, the Fund reported a one-year return of 7.61% as of Jun'26, against a benchmark return of 10.61%, reflecting an underperformance of approximately 300 basis points. This material performance gap is broadly attributable to the Fund's heavy cash positioning and its deviation from the stated investment objective, which has constrained yield optimization and resulted in meaningful below-benchmark returns. The Fund's ability to realign its portfolio with its stated mandate and assigned rating criteria will be a critical consideration in future rating assessments.
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 2,139mln at the end of Jun'26.