Karachi, February 26, 2010: JCR-VIS Credit Rating Company Limited (JCR-VIS) has revised the MQ rating of Pak-Oman Asset Management Company Limited (POAML) from ‘AM3+’ (AM-Three Plus) to ‘AM3’ (AM-Three). The Outlook on the rating is ‘Stable’.
The revision in rating takes into account the weak performance of funds under management. While POAML saw its fund family grow to five funds with the launch of three new funds during FY09, the AMC has seen negligible growth in total assets under management. Additionally non performing assets are present in all the funds, to varying extent, ranging from about 0.4% in Pak-Oman Advantage Islamic Income Fund (open-end Islamic income fund) to 19% in POBOP Advantage Plus Fund (open-end income fund) at the end of January 2010.
Significant concentration is present in the unit holding pattern of all the open end funds on account of the limited number of investors. At the end of FY09, aggregate investors in all open funds combined stood at 131. The management company had projected growth in the number of unit holders; however this has yet to materialize. The management company has also seen turnover in the sales and distribution functions. Currently the management is working to revamp the marketing department.
The management rights of POBOP Advantage Plus Fund, launched in association with The Bank of Punjab, are in the process of being transferred to another AMC, subject to the approval of the Board of both AMCs and necessary regulatory approvals and consent of the trustee and unit holders of the fund. The ratings assigned to the income funds of POAMC have not been issued by JCR-VIS.
For further information on these rating announcements, please contact Mr. Safdar Kazi (Ext: 501) or Ms. Sobia Maqbool (Ext: 506) at 021-35311861-70 or fax to 021-35311872-3.
President & CEO
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