PACRA Maintains the Asset Manager Rating of Pak Oman Asset Management Company Limited
|Rating Type||Asset Manager|
The rating recognizes the company's association with an established and renowned financial institution, Pak Oman Investment Company Limited. The rating reflects the company's experienced management, structured investment decision making process and diversified fund slate. The corporate governance framework is considered strong on the backdrop of sound board oversight and presence of seasoned professionals in the management team. The AUMs of the Company has increased by 33% since Jun'19 and stood at PKR 4.4bln at end Jun'20. However, the funds' performance remained subdued in relation to their category average returns. Going forward, the management is focusing on retail penetration by enhancing retail client base and growth in SMA business. This would support the revenue stream. To enhance the assets under management, a number of initiatives are being taken including the expansion of sales force and ongoing focus on alternative distribution channels for enhanced retail market penetration. The Company has issued right shares to meet the minimum equity requirements regulatory as prescribed by SECP. The Company has also paid of all long term loan and now showing zero leveraging structure, which bodes well for the rating.
The rating is dependent on the company’s ability to enhance its market position, gain in terms of assets under management and maintaining strong performance of its funds. Meanwhile, upholding high governance standards and strengthening of risk management is crucial for the rating.
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 (98%). The remaining shareholders include Oman International Development Company (0.84%), Bank Muscat (0.43%) and National Logistic Cell (0.84%).
The company’s Board of Directors comprise seven members including the managing director of Pak Oman Investment Company, Mr. Bahauddin Khan. The board’s chairman H.E. Yahya Bin Said Bin Abdullah Al-Jabri is the Minister of the Special Economic Zone Authority at A’Duqum, Sultanate of Oman. The company’s diverse product slate includes eleven open-end funds as at July'19 belonging to all major categories. Pak Oman has four open-end funds under its name, while seven open-end funds belonged to Askari Investment Management Limited which were acquired by Pak Oman Asset Management Company.