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Lahore, March 11, 2023 (PPI-OT): Pak Oman Asset Management Company Ltd (or the “POAMCL”) is a Non-Banking Finance Company incorporated on July 28, 2006 as a public unlisted company with the principal objective of acting as an investment manager for mutual funds. The prominent business acumen of the sponsor bodes well for the rating.
The Company is eying to increase its market share in rapidly growing market. Currently the market share of the Company stood at 0.6% during CY22. However, the AUMs of the Company increased by 17% to PKR 9.3bln at the end Dec’22 (SPLY: 7.9bln).
The number of retail client is 89% of mixed investors. The Fund performance of the Company remained adequate as 65% of the Fund underperformed the benchmark. Whereas, 35% of the Fund outperformed the benchmark.
On the financial side, the core income of the Company decreased by 25% to PKR 54mln at the end Dec’22 (SPLY: 72mln). The net profit of the Company stood at PKR 0.25mln at the end Dec’22 (SPLY: loss PKR -164mln). The equity of the Company stood at PKR 150mln in the end Dec’22 (Dec’21: PKR 149mln) which is below the regulatory requirement of PKR 230mln.
However, Pak Oman Investment Company extend support to POAMCL by injecting equity which will help the company to meet its minimum regulatory requirement and will ensure proper execution of the business plan as desired.
The positive 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
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