Karachi, May 25, 2016: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the Management Quality Rating of Pak Oman Asset Management Company Limited (POAMC) at ‘AM4++’ (AM-Four Double Plus). Outlook on the assigned rating is ‘Positive’. The previous rating action was announced on May 4, 2016.
The assigned rating takes into account sponsorship profile of the company with major shareholding vested with Pak Oman Investment Company Limited (POICL), a joint venture of Government of Pakistan and Sultanate of Oman. Strong financial support was exhibited by them through a recent equity injection of Rs. 230m. This enabled POAMC to comply with Minimum Capital Requirement, as also, provided space for reactivating its operations. Some key management resources have been appointed and risk & compliance infrastructure is also being developed along with a business plan. Outcome of these efforts would emerge over time.
Rating is constrained by high concentration of associate investments in funds, a very small retail base & distribution network and start-up size of Assets under Management (AUMs). These areas would need to be addressed by management over time. Though legacy performance of the funds is lagging, returns have showcased an uptick with the recent change of management.
For further information on this rating announcement, please contact the undersigned (Ext: 508) or Javed Callea (Ext: 501) at 35311861-70 or fax to 35311872-3.
Mohammed Khalid Ali
Applicable Rating Criteria: Mutual Fund Rating (March 2016)
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