The Pakistan Credit Rating Agency Limited
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Wajeeha Asghar

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

Rating Type Asset Manager
(10-Mar-23 )
(11-Mar-22 )
Action Maintain Maintain
AM Rating AM3++ AM3++
Outlook Positive Positive
Rating Watch - -

Pak Oman Asset Management Company Ltd ( or the "POAMCL") is a Non-Banking Finance Company incorporated on July 28, 2006 as a public unlisted company with the principal objective of acting as an investment manager for mutual funds. The prominent business acumen of the sponsor bodes well for the rating. The Company is eying to increase its market share in rapidly growing market. Currently the market share of the Company stood at 0.6% during CY22. However, the AUMs of the Company increased by 17% to PKR 9.3bln at the end Dec’22 (SPLY: 7.9bln). The number of retail client is 89% of mixed investors. The Fund performance of the Company remained adequate as 65% of the Fund underperformed the benchmark. Whereas, 35% of the Fund outperformed the benchmark.
On the financial side, the core income of the Company decreased by 25% to PKR 54mln at the end Dec’22 (SPLY: 72mln). The net profit of the Company stood at PKR 0.25mln at the end Dec’22 (SPLY: loss PKR -164mln). The equity of the Company stood at PKR 150mln in the end Dec’22 (Dec’21: PKR 149mln) which is below the regulatory requirement of PKR 230mln. However, Pak Oman Investment Company extend support to POAMCL by injecting equity which will help the company to meet its minimum regulatory requirement and will ensure proper execution of the business plan as desired.
The positive outlook assigned to the Company, reflects the growing AUMs, diversifying fund slate, retail penetration and sponsor’s commitment to support equity base. 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.

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 ~9.3bln at the end Dec'22

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.