The Pakistan Credit Rating Agency Limited
08-Dec-17
Analyst
Mohsin Naseer
mohsin.naseer@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Asset Manager Rating of Pak Oman Asset Management Company Limited
| Rating Type | Asset Manager | |
|
Current (08-Dec-17 ) |
Previous (08-Jun-17 ) |
|
| Action | Maintain | Maintain |
| AM Rating | AM3 | AM3 |
| Outlook | Positive | Positive |
| Rating Watch | - | - |
The rating reflects the company’s affiliation with a development financial institution – Pak Oman Investment Company Limited (POICL). The company has concluded merger with Askari Investment Management Ltd. The merger encapsulates Company’s strategic plan to create synergies in elevating AUM base through targeting institutional and retail investors while marketing its merged fund slate. Post-merger, the company plans to strengthen its organizational structure and decision making process translating into consistent fund performance. The company, though being in the industry for long, had limited presence. The sponsor identified acquisition as a key step to move forward in increasingly competitive asset management industry.
The "Positive Outlook" reflects the company’s successful execution of the merger process and its translation into smooth operations. With its diversified fund-slate, POAMCL's post-merger strategy to strengthen its market position would be important. In addition, consistent fund performance coupled with diversity in investor base would bode well for the company.
About
the Entity
Pak Oman Asset Management Company (POAMCL) was incorporated in 2006. POICL holds 97% shareholding in POAMCL (FY15: 95%). POICL is a 50:50 joint venture between Government of Pakistan and Sultanate of Oman. The board’s chairman H.E. Yahya Bin Said Bin Abdullah Al-Jabri is also the Chairman of the Capital Market Authority of Sultanate of Oman. Additionally, He holds an honorable position as Chairman of the Special Economic Zone Authority of A’Duqum, Oman. The company is managing four-open ended funds with asset under management of PKR 1,208mln and the SMA portfolio of ~PKR 660 mln as of Sep-17.
POAMCL’s Board of Directors (BoD) currently comprises eight members including CEO & two independent directors. The CEO, Mr. Adeel Ahmed Khan, Masters in Economics, is a seasoned professional and carries extensive experience in the asset management industry. He is supported by a team of professionals.
Askari Investment Management Limited managing seven open-end fund with asset under management of PKR 5,600mln as at Sep-17