PACRA Maintains Asset Manager Rating of Pak Oman Asset Management Company Limited

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.
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.

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).