Press Release

JCR-VIS revises Management Quality Rating of Pak Oman Asset Management Company Limited
 

Karachi, April 04, 2013: JCR-VIS Credit Rating Company Limited (JCR-VIS) has revised the Management Quality rating of Pak-Oman Asset Management Company Limited (Pak Oman) from ‘AM3’ (AM-Three) to ‘AM3-’ (AM-Three Minus). Outlook on the assigned rating remains ‘Negative’.

Net equity of the company stood much lower than the Minimum Equity Requirement (MER) of Rs. 180m set by the Securities & Exchange Commission of Pakistan for asset management companies for FY12. Given that the sponsors have shown reservation to meet equity shortfall through cash injection, merger option with another AMC is being actively considered. Given the company’s current financial resources, capacity to induct resources is constrained. The company experienced turnover at the senior management level; positions of Head of Research, acting CFO and Head of Sales were filled internally during FY12.

Pak Oman is currently managing five collective investment schemes. With growth achieved in Separately Managed Accounts (SMAs), overall AUMs stood at Rs. 2b at end February 2013. Pak Oman’s market share remains minimal at under 1%, while related party holding has remained sizeable. Performance of funds under management has depicted varying trends.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at 35311861-70 or fax to 35311872-3.



Jamal Abbas Zaidi
Deputy CEO

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Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. JCR-VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2013 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited