The Pakistan Credit Rating Agency Limited
14-Sep-23
Analyst
Wajeeha Asghar
wajeeha.asghar@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 (14-Sep-23 ) |
Previous (10-Mar-23 ) |
|
| Action | Maintain | Maintain |
| AM Rating | AM3++ | AM3++ |
| Outlook | Stable | Positive |
| Rating Watch | - | - |
The assigned rating of Pak Oman Asset Management Company Ltd ( or the "POAMCL") reflects experienced management, structured investment decision making process and adequate governance framework. The prominent business acumen of the sponsor bodes well for the rating. The average market share of the Company stood at 0.5% as of 6MCY23. However, the AUMs of the Company increased to PKR 6.3bln at end Jun’23 from PKR 5.7bln at end Jun’22. The majority of the Funds in line with the industry averages.
On the financial side, the management fee of the Company increased by ~30% at PKR 32.8mln, during 6MCY23 (SPLY: PKR 18mln). The Company reported net profit of ~PKR 3mln during 6MCY23 (SPLY was in net loss of PKR -4mln). The equity of the Company stood at PKR 152mln at the end Jun’23 (Jun’22: 145mln). Going forward, injection of PKR 80mln as equity would support the Company to comply the minimum regulatory equity needs.
The rating is dependent on the Company’s ability to enhance its market position, maintain minimum requirement of equity, 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
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 company is a majority owned subsidiary of Pak Oman Investment Company Limited (98%). The remaining shareholders include Oman International Development Company (0.84%) and Bank Muscat (0.43%). The company’s Board of Directors comprises six members including the managing director of Pak Oman Investment Company, Mr. Bahauddin Khan. The board’s chairman H.H Juland Jaifer Salim Al-Said has over 15 years of experience at the Oman Investment Authority (OIA) (Previously known as State General Reserve Fund). The company’s diverse product slate includes eight open end funds as at Feb'23 belonging to all major categories. The total AUMs of the Company stood at ~6.3bln at the end Jun'23