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

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. POAMCL is managing an adequate fund slate composed of 09 open-end funds belonging to all major categories. Considering the high interest rate environment during FY24, the fund slate is tilted more towards Income and money market funds with ~84% of total assets concentrated in these categories (Islamic and conventional). The majority of the Funds performed above with the benchmark. The average market penetration of the Company stood at 0.14% as of Jun'24. However, the AUMs of the Company stood at PKR 3.7bln as of Jun'24 (Jun'23: PKR 6.3bln). The Company has strategized to improve its market share by strengthening retail penetration and improving its technological platform. The current AUM mix depicts an adequate retail vs. corporate ratio of 13:87.
On the financial side, the management fee of the Company increased by ~72% at PKR 70mln during CY23. (CY22: PKR 41mln. Whereas, it stood at PKR 40mln, during 6MCY24 (SPLY: PKR 31.4mln). The Company reported a net loss of PKR -11mln during CY23 (CY22: PKR 0.25mln). During 6MCY24, it stood at ~PKR 1.5mln (SPLY: PKR 2.5mln). The equity of the Company increased by 58% and stood at PKR 240mln at the end of Jun’24 (Jun’23: 152mln). The Parent Company has injected equity of PKR 80mln to help the AMC to meet the minimum regulatory equity requirement.
The rating is dependent on the Company’s ability to enhance its market position, maintain minimum requirement of equity 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 (99.46%). The remaining shareholder is Oman International Development Company, SAOG (0.54%). 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 nine open end funds as at Jun'24 belonging to all major categories. The total AUMs of the Company stood at ~3.7bln at the end Jun'24.