Pak Oman Asset Management Company Limited

CREDIT RATING REPORT | Sep-25

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Rating History
Dissemination Date Rating Outlook Action Rating Watch
12-Sep-25 AM3++ Stable Maintain -
13-Sep-24 AM3++ Stable Maintain -
14-Sep-23 AM3++ Stable Maintain -
10-Mar-23 AM3++ Positive Maintain -
11-Mar-22 AM3++ Positive Maintain -
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 AMC is a majority-owned subsidiary of Pak Oman Investment Company Limited (99.46%). The remaining shareholder is Oman International Development Company, SAOG (0.54%). The AMC'c Board of Directors comprises five members, including the managing director of Pak Oman Investment Company, Mr. Nauman Ansari. The board’s chairman H.H Juland Jaifer Salim Al-Said has over 16 years of experience at the Oman Investment Authority (OIA) (Previously known as the State General Reserve Fund).

Rating Rationale

The assigned rating of Pak Oman Asset Management Company Ltd. ("POAMCL" or the "AMC") reflects the management’s efforts to sustain business operations amid intensifying competition in the asset management industry. Additional comfort to the rating is derived from the sponsors’ demonstrated support through the recent equity injection and their continued strategic oversight. The rating also factors in an adequate governance framework, an experienced management team, and satisfactory fund performance. Recognizing the competitive dynamics of the Asset Management Industry, the AMC’s AUM base experienced pressure, including redemptions from a concentrated top-10 investor segment. This also affected the fund sizes of Askari Sovereign Yield Enhancer, Pak Oman Advantage Islamic Income Fund, and Pak Oman Daily Dividend Fund. To address this, the sponsors and management are working on a revival strategy that includes potential equity injection, either from existing sponsors or external sources. This injection would provide additional support to business growth, including seed investments across multiple funds. The revival strategy is at an advanced stage and is expected to be finalized in the coming months.
In line with the industry, the fund slate was tilted more towards Income and Money Market funds, with ~84% of total assets concentrated in these categories (Islamic and conventional). As of Jun’25, the AMC's AUMs stood at PKR 1.5bln (Jun’24: PKR 3.8bln). The decline reflects the high concentration of the investor base, which makes the AUMs more sensitive to movements by a few large investors. The current AUM mix depicts a retail vs. corporate ratio of 15:85. The market penetration of the AMC stood at 0.04% as of Jun’25 (Jun’24: 0.14%). Out of nine funds, seven funds performed above their respective benchmarks.
On the financial side, the management fee of the AMC amounted to PKR 59.5mln during CY24 (CY23: PKR 70mln). The AMC reported a net loss of ~PKR 6.4mln during CY24 (CY23: net loss of PKR 11mln). The equity of the AMC stood at PKR 232mln at end-CY24 (CY23: PKR 239mln), meeting the minimum regulatory requirement.

Key Rating Drivers

The rating remains dependent on the AMC's ability to gradually strengthen its market position, maintain the minimum equity requirement, and sustain the performance of its funds. Ongoing sponsors' commitment in the form of equity injection plans will remain critical to maintain the rating in the near future.

REPORT CONTENTS
  1. Rating Analysis
  2. Financial Summary
  3. Rating Scale
  4. Regulatory Disclosure

Pak Oman Asset Management Company Limited

rating analysis

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Profile
Structure

Pak Oman Asset Management Company Limited ("POAMCL" or the "AMC") was incorporated on July 28, 2006 as a public unlisted company.


Background

On 31st May 2017, 100% shares of Askari Investment Management Limited were acquired by Pak Oman Asset Management for an amount of PKR 551mln. The merger was completed and effective from October 31, 2017. POAMCL is licensed to carry out asset management company and investment advisory services under the NBFC Rules, 2003, and the NBFC Regulations, 2008.


Market Share

The market share of the AMC stood at 0.04% in Jun'25 (Jun'24 0.14%).


Diversification of Fund Mix

The adequately diversified fund slate includes nine open-end funds, representing asset allocation, income, aggressive fixed income, money market, and other Shariah-compliant categories


Investor Concentration

At the fund level the average concentration of the top ten investors falls in the range of  80-90% while the average related party holdings represent ~54% of the total assets under management of the AMC at the end of 3MFY25.


Ownership
Ownership Structure

The AMC is 99.46% owned subsidiary of Pak Oman Investment Company Limited and remaining shareholder is Oman International Development and Investment Company, SAOG (0.54%).


Business Acumen

The parent company, Pak Oman Investment Company Limited, was formed as a joint venture between the Governments of Pakistan and Sultanate of Oman in July 2000. Pak Oman Investment Company, along with its subsidiaries, provides corporate banking, investment banking and treasury services.


Financial Strength

POAMCL derives its financial strength from its parent company, Pak Oman Investment Company, which provides strong institutional backing and support. As of Dec’24, Pak Oman Investment Company reported total assets of PKR 387bln and a profit after tax of PKR 557mln. The Company is AA+ (long-term) rated, further reflecting its financial stability.


Governance
Board Structure

The AMC's board of directors comprises five members, consisting of two non-executive directors, one executive director, and two independent directors.


Members’ Profile

The board members have strong educational backgrounds and carry extensive diversified experience. The Chairman, Mr. H.H Juland Jaifer Salim Al-Said, successor of Mr. H.E. Yahya Bin Said, has over 15 years of experience at the Oman Investment Authority (OIA) (Previously known as the State General Reserve Fund), the largest sovereign wealth fund of the Sultanate of Oman, in the areas of Private Equity, Real Estate, and Risk Management.


Board Effectiveness

To ensure its effectiveness, the board has established two committees: i) audit, and ii) HR and remuneration committees.


Transparency

The internal audit function is outsourced to RSM Avais Hyder Liaquat Nauman Chartered Accountants. The external auditors are BDO Ebrahim & Co. Chartered Accountants, which fall into the 'A' category of SBP audit firm rankings.


Management
Organizational Structure

The organizational structure aligns with the operations of the AMC. The AMC operates through eight main departments which fall under the purview of the CEO except for the internal audit department which reports to the audit committee.


Management Team

The AMC's management team consists of qualified and experienced professionals. The CEO, Ms. Sadaf Kazmi holds a Masters degree in public administration and carries substantial experience of over a decade in the asset management industry. Mr. M. Kamran Allauddin, serving as the Head of Compliance & Risk, holds the qualification of FCMA and directly reports to the CEO. With a total professional experience of 23 years. Mr. Arsalan Javed Salam, the Chief Investment Officer, possesses a Master’s Degree in International Banking & Finance and also reports to the CEO. He carries 9 years of overall experience. Mr. Abdul Moeed, the Financial Controller, is a qualified FCCA and reports to the CEO as well. Backed by 19 years of total experience.


Technology Infrastructure

The ACM is maintaining an in-house system to conduct the operations of unit management, settlement, and fund accounting. The modules also generate tailor-made MIS reports for analytical purposes.


Control Environment

Internal Audit plan, approved by Audit Committee, encompasses the review of the internal control system, which includes policies/procedures, physical safeguards, KYC/AML and monitoring of compliance function pertaining to NBFC regulations. The compliance and risk functions are not segregated and are overseen by one dedicated person.


Investment Risk Management
Credit Risk

Internal assessment modules are used with a combination of qualitative and quantitative analysis. Excel-based credit risk scorecards are in place which provide statistical estimates for counterparty credit risk. The fund managers ensure the credit portfolio of the fund exposed to credit risk is broadly diversified.


Liquidity Profile

Funds invest a significant portion of their assets in liquid investment avenues to maintain sufficient liquidity. The compliance department regularly generates liquidity reports along with common statistical tools like VAR analysis for assessing liquidity risks. The portfolio allocations are monitored on ongoing basis and matched to the approved allocation limits and any breach in exposure limit is reported to the investment committee in a prompt manner.


Market Risk

The AMC has set appropriate metrics to measure its exposure to market risk factors, such as sensitivity analysis and stress testing. The AMC's management places special focus on monitoring exchange rates and global commodity prices, and a macro-economic model has been developed in order to have a macroeconomic fundamental review regularly


Portfolio Management
IC Composition

The investment committee comprises the CEO, CFO, CIO, Fund Managers, and Head of Compliance & Risk. Mr. Arsalan Javed Salam, serving as the Chief Investment Officer holds a Master’s Degree in International Banking & Finance and reports to the CEO. He brings with him 9 years of overall professional experience within the financial services industry, including 1.4 years in his current role as the CIO, during which he has had fixed income, money market and equity/asset allocation funds under management.


Effectiveness

The investment committee meets formally on a weekly or as-needed basis. However, daily informal meetings are held for making decisions pertaining to asset allocations and fund management.


Investment Research and Analysis

The AMC is using research from the top ten brokerage houses.


Customer Relationship
Investor Services

The Investor Services Department provides investor education, personalized solutions, and client reporting. Retail customer outreach is expected to be enhanced by allowing investments in ACM's mutual funds through the digital platform of Emlaak.


Investor Reporting

In addition to publishing fund manager reports on a monthly basis, the AMC also disseminates unit holder statement every month through email (subscription), which comprises net asset value and month end closing values.


Distribution and Sales Network

The AMC has segregated the marketing and distribution department into two departments: i) Sales and Marketing, which is responsible for the corporate sales, separately managed accounts, and investor services ii) Retail Sales which is responsible for penetration into the retail market.


Performance
Asset Under Management

The assets under management of the AMC decreased by PKR 1.5bln at the end Jun’25 from PKR 3.8bln at end Jun’24. The majority of the Fund outperformed the benchmark.


Asset Manager

The management fee of the AMC amounted to PKR 59.5mln during CY24 (CY23: PKR 70mln, 3MCY25 PKR 8.6mln). The AMC reported a net loss of ~PKR 6.4mln during CY24 (CY23: net loss of PKR 11mln; 3MCY25: net loss of PKR 11mln). The equity of the AMC stood at PKR 232mln at end-CY24 (CY23: PKR 239mln; 3MCY25 PKR 221mln). Due to the weak performance of multiple funds leading to lower AUMs and investor redemptions, management fee income declined, which, coupled with a largely fixed cost base, resulted in net losses. The management is taking steps to revive the AMC. It might be in the form of equity injection from the existing sponsor or external party.
 
 

Sep-25

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Pak Oman Asset Management Company Limited

funds performance

(Pak Oman Asset Management Limited)

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Sr. No. Fund Name Category Launch Date Weight (%) AUMs (PKR' mln) Return | Rolling 12 Months (Jun'24-Jun'25) Stability Rating/Performance Ranking
Jun-25 Mar-25 Dec-24 Sep-24 Return Benchmark Fund vs. Benchmark
Conventional Funds
1 Askari High Yield Scheme Aggressive fixed Income 1-Dec-05 19.9% 297 311 307 299 11.9% 13.9% -2.0% A
2 Pak Oman Income Fund Income 27-Aug-11 16.8% 251 262 262 387 12.1% 13.8% -1.7% A+
3 Askari Cash Fund Money Market 11-Aug-09 21.1% 315 390 508 526 14.0% 13.8% 0.2% AA+
4 Askari Sovereign Yield Enhancer Income 9-Dec-11 5.4% 82 81 160 83 14.5% 13.8% 0.7% AA-
5 Pak Oman Advantage Asset Allocation Fund Asset Allocation 30-Oct-08 9.2% 137 187 184 125 39.0% 41.0% -1.9% -
6 Pak Oman Micro Finance Fund (Launch Date: May'24) Income 11-May-24 5.5% 82 106 553 393 14.4% 13.8% 0.6% A-
78% 1,164 1,337 1,974 1,813
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7 Pak Oman Advantage Islamic Income Fund Shariah Compliant Income 30-Oct-08 6.7% 100 107 132 148 10.9% 10.7% 0.2% A+
8 Pak Oman Islamic Asset Allocation Fund Shariah Compliant Asset Allocation 30-Oct-08 8.4% 125 171 179 116 35.0% 36.9% -1.9% -
9 Pak Oman Daily Dividend Fund Shariah Compliant Money Market 8-Dec-21 7.1% 107 70 69 120 10.4% 10.2% 0.2% AA
Sum 22.2% 332 347 380 384
Grand Total 100% 1,496 1,684 2,354 2,197

Sep-25

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Pak Oman Asset Management Company Limited

rating scale

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Sep-25

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Pak Oman Asset Management Company Limited

regulatory disclosure

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  1. Rating Team Statements
    1. Rating is just an opinion about the creditworthiness of the entity and does not constitute a recommendation to buy, hold, or sell any security of the entity rated or to buy, hold, or sell the security rated, as the case may be. (Chapter III; 14-3-(x))
    2. Conflict of Interest
      1. The Rating Team or any of their family members have no interest in this rating (Chapter III; 12-2-(j))
      2. PACRA, the analysts involved in the rating process, and members of its rating committee and their family members do not have any conflict of interest relating to the rating done by them (Chapter III; 12-2-(e) & (k))
      3. The analyst is not a substantial shareholder of the customer being rated by PACRA [Annexure F; d-(ii)]
      4. Explanation: for the purpose of the above clause, the term "family members" shall include only those family members who are dependent on the analyst and members of the rating committee.
  2. Restrictions
    1. No director, officer, or employee of PACRA communicates the information acquired by him for use for rating purposes to any other person, except where required under law to do so. (Chapter III; 10-(5))
    2. PACRA does not disclose or discuss with outside parties or make improper use of the non-public information which has come to its knowledge during a business relationship with the customer. (Chapter III; 10-7-(d))
    3. PACRA does not make proposals or recommendations regarding the activities of rated entities that could impact a credit rating of the entity subject to rating. (Chapter III; 10-7-(k))
  3. Conduct of Business
    1. PACRA fulfills its obligations in a fair, efficient, transparent, and ethical manner and renders high standards of services in performing its functions and obligations. (Chapter III; 11-A-(a))
    2. PACRA uses due care in the preparation of this Rating Report. Our information has been obtained from sources we consider to be reliable, but its accuracy or completeness is not guaranteed. PACRA does not, in every instance, independently verify or validate information received in the rating process or in preparing this Rating Report. (Clause 11-(A)(p))
    3. PACRA prohibits its employees and analysts from soliciting money, gifts, or favors from anyone with whom PACRA conducts business. (Chapter III; 11-A-(q))
    4. PACRA ensures before the commencement of the rating process that an analyst or employee has not had a recent employment or other significant business or personal relationship with the rated entity that may cause or may be perceived as causing a conflict of interest. (Chapter III; 11-A-(r))
    5. PACRA maintains the principle of integrity in seeking rating business. (Chapter III; 11-A-(u))
    6. PACRA promptly investigates in the event of misconduct or a breach of the policies, procedures, and controls, and takes appropriate steps to rectify any weaknesses to prevent any recurrence, along with suitable punitive action against the responsible employee(s). (Chapter III; 11-B-(m))
  4. Independence & Conflict of Interest
    1. PACRA receives compensation from the entity being rated or any third party for the rating services it offers. The receipt of this compensation has no influence on PACRA’s opinions or other analytical processes. In all instances, PACRA is committed to preserving the objectivity, integrity, and independence of its ratings. Our relationship is governed by two distinct mandates: i) rating mandate - signed with the entity being rated or issuer of the debt instrument, and ii) fee mandate - signed with the payer, which can be different from the entity.
    2. PACRA does not provide consultancy/advisory services or other services to any of its customers or their associated companies and associated undertakings that are being rated or have been rated by it during the preceding three years, unless it has an adequate mechanism in place ensuring that the provision of such services does not lead to a conflict of interest situation with its rating activities. (Chapter III; 12-2-(d))
    3. PACRA discloses that no shareholder directly or indirectly holding 10% or more of the share capital of PACRA also holds directly or indirectly 10% or more of the share capital of the entity which is subject to rating or the entity which issued the instrument subject to rating by PACRA. (Chapter III; 12-2-(f))
    4. PACRA ensures that the rating assigned to an entity or instrument is not affected by the existence of a business relationship between PACRA and the entity or any other party, or the non-existence of such a relationship. (Chapter III; 12-2-(i))
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  5. Monitoring and Review
    1. PACRA monitors all the outstanding ratings continuously, and any potential change therein due to any event associated with the issuer, the security arrangement, the industry, etc., is disseminated to the market immediately and in an effective manner after appropriate consultation with the entity/issuer. (Chapter III; 17-(a))
    2. PACRA reviews all the outstanding ratings periodically on an annual basis. Provided that public dissemination of annual review and in an instance of change in rating will be made. (Chapter III; 17-(b))
    3. PACRA initiates an immediate review of the outstanding rating upon becoming aware of any information that may reasonably be expected to result in downgrading of the rating. (Chapter III; 17-(c))
    4. PACRA engages with the issuer and the debt securities trustee to remain updated on all information pertaining to the rating of the entity/instrument. (Chapter III; 17-(d))
  6. Probability of Default
    1. PACRA’s Rating Scale reflects the expectation of credit risk. The highest rating has the lowest relative likelihood of default (i.e., probability). PACRA’s transition studies capture the historical performance behavior of a specific rating notch. Transition behavior of the assigned rating can be obtained from PACRA’s Transition Study available at our website. (www.pacra.com) However, the actual transition of rating may not follow the pattern observed in the past. (Chapter III; 14-3(f)(vii))
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    1. All information contained herein is considered proprietary by PACRA. Hence, none of the information in this document can be copied or otherwise reproduced, stored, or disseminated in whole or in part in any form or by any means whatsoever by any person without PACRA’s prior written consent.

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