The Pakistan Credit Rating Agency Limited
28-Aug-18
Analyst
Shahzaib Khalid
shahzaib.khalid@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Upgrade Asset Manager Rating of Pak Oman Asset Management
| Rating Type | Asset Manager | |
|
Current (28-Aug-18 ) |
Previous (08-Dec-17 ) |
|
| Action | Upgrade | Maintain |
| AM Rating | AM3+ | AM3 |
| Outlook | Stable | Positive |
| Rating Watch | - | - |
The rating recognizes the company’s ownership structure, Pak Oman Investment Company Limited having shareholding of ~97%.The acquisition and subsequent merger of Askari Investment Management Limited with Pak Oman Asset Management Company Limited has concluded in CY17. The rating incorporates the company’s intention to utilize from the expertise of company’s sponsor and the newly merged entity. However, the AUMs witnessed decline after the merger due to redemption owing to merger uncertainties. Going forward, the company plans to enhance its product slate by prospective launch of funds in the asset allocation category to bring fresh influx of AUMs.
The rating reflects the company’s experienced and qualified management team, structured investment management framework and an adequate operating platform. The improved level of these parameters is primarily an outcome of merger with Askari Investment Management Limited.
The rating is dependent on executing the planned strategy and complete integration of the processes. Wherein, growth in AUMs and improvement in mobilization of funds from retail segment would bode well for the company. Meanwhile, the company is taking the necessary steps to refurbish its research department while sustaining the quality of its fund management function.
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 (SECP) to carry out asset management and investment advisory services under the Non-Banking Finance Companies Regulations. During the year, the company remained a majority owned subsidiary of Pak Oman Investment Company Limited (97%). The remaining shareholders include Oman International Development Company (1.2%), Bank Muscat (0.6%) and National Logistic Cell (1.2%).
The company’s Board of Directors (BoD) currently comprise eight members including the CEO, Mr. Adeel Ahmad 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 March-18 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 have now been acquired by Pak Oman.