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The Pakistan Credit Rating Agency Limited

Date
06-Jun-2017
Analysts
Rai Umar Zafar
rai.umar@pacra.com

Mohsin Naseer
mohsin.naseer@pacra.com

+92-42-35869504
www.pacra.com
Applicable Criteria

  • Asset Manager Rating Methodology (Jun 16)

Related Research

  • Sector Study | Asset Management (Apr 17)
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PACRA assigns "Positive Outlook" to the Asset Manager Ratings of Pak Oman Asset Management Company Limited
 Rating Type Asset Manager
Current
(06-Jun-2017-)
Previous
(17-Nov-2016)
 Action Maintain Initial
 AM Rating AM3 AM3
 Outlook Positive Stable
 Rating Watch - -

The rating reflects the company’s affiliation with a development financial institution – Pak Oman Investment Company Limited (POICL). Lately, POICL made equity injection beefing up its shareholding to 97%. The company, though being in the industry for long, had limited presence. The sponsor identified acquisition as a key step to move forward in increasingly competitive asset management industry. Accordingly, it has finalized acquisition of Askari Investment Management Limited. The amalgamation is under process. The Company’s strategic plan envisages to create synergies in elevating AUM base through targeting institutional & retail investors while marketing its merged fund slate. Post-merger, the company plans to strengthen its organizational structure and decision making process.

The "Positive Outlook" reflects the company’s successful execution of the merger process. With its diversified fund-slate, POAMCL's post-merger strategy to strengthen its market position would be important. In addition, consistent fund performance coupled with diversity in investor base would bode well for the company.
About the Entity
Pak Oman Asset Management Company (POAMCL) was incorporated in 2006. POICL holds 97% shareholding in POAMCL (FY15: 95%). POICL is a 50:50 joint venture between Government of Pakistan and Sultanate of Oman. The board’s chairman H.E. Yahya Bin Said Bin Abdullah Al-Jabri is also the Chairman of the Capital Market Authority of Sultanate of Oman. He also holds an honorable position as Chairman of the Special Economic Zone Authority of A’Duqum, Oman. The company is managing four-open ended funds with asset under management of PKR 1,805mln and the SMA portfolio of ~PKR 516 mln as of Mar-17.

POAMCL’s Board of Directors (BoD) currently comprises eight members including CEO & two independent directors. The CEO, Mr. Adeel Ahmed Khan, Masters in Economics, is a seasoned professional and carries extensive experience in the asset management industry. He is supported by a team of professionals.

Askari Investment Management Limited is managing seven open-end fund with asset under management of PKR 6,757mln as at Mar-17
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.