Lahore, March 11, 2022 (PPI-OT):The rating recognizes Pak Oman Asset Management Company Limited’s (“POAMCL” or the “Company”) association with an established and renowned financial institution, Pak Oman Investment Company Limited. The rating reflects the Company’s experienced management, structured investment decision making process and adequate governance framework. Over the past few years, the AUMs of the Company have shown a significant growth of ~79%, since Jun’19. Currently, the AUMs are standing at PKR ~8bln, while the average market share remained 0.8%, at Dec’21.

The Company is eying to boost its market share in rapidly growing market. The overall, fund performance of the Company remained above the benchmark except for asset allocation category which underperformed and has limited size. The Company has also improved its cost control measures and has also posted a steady growth in revenue leading to reduction in accumulated losses.

To enhance the assets under management, a number of initiatives are being taken including the expansion of sales force and ongoing focus on alternative distribution channels for enhanced retail market penetration. In order to strengthen its position, in the industry, the Company is also diversifying its product slate and currently launched a new fund in Islamic daily dividend category. The financial risk profile of the AMC is supported by adequate capital structure, which bodes well for the rating.

Change in 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.

For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com