PACRA upgrades Asset Manager Rating of Pak Oman Asset Management

The Pakistan Credit Rating Agency (PACRA) on Thursday, August 30, 2018, upgraded the Asset Manager rating of Pak Oman Asset Management to ‘AM3+’.

Previously, on December 8, 2017, its' Asset Manager Rating was maintained at ‘AM3’, with a positive outlook forecasted while at present, the outlook forecasted by PACRA for Pak Oman Asset Management is ‘stable’.

According to the rating agency, the rating recognizes the company’s ownership structure as Pak Oman Investment Company Limited has a shareholding of approximately 97% of Pak Oman Asset Management.

In addition, the rating also takes into account the acquisition and subsequent merger of Askari Investment Management Limited with Pak Oman Asset Management Company Limited, which had been concluded in the calendar year 2017.

PACRA further added that the rating incorporates the company’s intention to utilize from the expertise of the company’s sponsor and the newly merged entity.

However, it said that the AUMs witnessed a decline after the merger due to redemption owing to merger uncertainties.

“Going forward, the company plans to enhance its product slate by the prospective launch of funds in the asset allocation category to bring a fresh influx of AUMs,” it added.

According to a press release issued by PACRA, 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 the merger with Askari Investment Management Limited, it said.

Furthermore, according to PACRA, the company is taking the necessary steps to refurbish its research department while sustaining the quality of its fund management function.

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.

As per PACRA’s statement, during the year, the company remained a majority-owned subsidiary of Pak Oman Investment Company Limited (97%). The remaining shareholders included Oman International Development Company (1.2%), Bank Muscat (0.6%) and National Logistic Cell (1.2%).