Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has reaffirmed the stability rating of the Pak Oman Microfinance Fund (POMFF), highlighting its consistent performance in the medium-risk category. The Fund, which focuses on generating competitive returns through investments in the microfinance sector, reported assets under management (AUM) of PKR 2 billion as of September 2025.

The Fund's investment strategy is centered on high-quality microfinance debt instruments and deposits with microfinance banks, alongside short-term money market options. A significant portion of the Fund's assets, approximately 98%, is allocated to bank placements, with the remaining 2% directed towards other approved investment avenues. This conservative asset allocation strategy aims to maintain liquidity while capitalizing on yield opportunities in the microfinance sector.

Credit quality remains a focal point for POMFF, with the majority of its investments (~97%) in A-rated avenues. A small fraction, about 0.81%, is invested in A+ rated instruments, aligning with the Fund's medium-risk profile. The Fund's Weighted Average Maturity (WAM) and duration were both at one day by the end of September 2025, indicating minimal sensitivity to credit and interest rate fluctuations.

Investor concentration within the Fund is notably high, with the top 10 investors holding 100% of the units. Despite this concentration, the Fund's short duration mitigates potential redemption pressures, ensuring it can promptly meet withdrawal requests while maintaining stability.

Future shifts in the Fund's investment policy or deviations from PACRA's rating criteria could affect the assigned ratings, underscoring the importance of adherence to established guidelines.